What is Tezos ICO in a Nutshell

Hey everyone, my name is Michael and I'm going to cover the Tezos ICO. I'm going to cover aspects of what is the Tezos ICO, its main core goals and objectives, what it's competing against, its competitors, and also lastly what I think about this ICO, if it's worth investing or not. Of course, I'm not a professional financial advisor, so this is my own opinion and this is not financial advice. So let's first start off with the Tezos ICO. What is Tezos? So I've been talking a lot about these initial coin offerings recently, for example, Bancor, we also got the basic attention token BAT, and those are actually token sales. This is a full-on new coin, this is a full-on platform, it's a full-on new cryptocurrency, and it's going to launch very, very soon. So I want to cover why this is kind of interesting and its main goals and objectives first. So first of all, let's look at the title first of all, the Self-Amending Cryptographic Ledger. Okay, Self-Amending, what does it mean by that? Well, it turns out, you know, in their white paper, what they're looking at it, is that they have their own form of government. So this is a decentralized autonomous organization. So if you buy a stake in Tezos, you can start voting on the future direction of Tezos. That's kind of interesting and that's very similar to Dash. If you look at Dash, they do a very similar thing, which is you can actually, as a master node, if you own a significant stake in Dash, you can start voting on community projects and on future funding for the program. Here, not only do you get to vote on funding, but you also get to vote on the direction of the project. For example, whether or not to adopt privacy features or whether or not to adopt, you know, different smart contract features. So that's kind of the core value of that, what they're saying. Saying the core value proposition is that they're self-governing cryptocurrency. But more importantly, they have another feature over Dash, which is that they have smart contracts. So they're kind of the hybrid between Ethereum and Dash. They're using the Dash autonomous model, the Dash DAO model with the decentralized autonomous organization, combining that with the features of Ethereum, smart contracts. They even have their own smart contract language called Mackelson. So it's very, very similar to kind of Ethereum in a sense that they want to be a future platform. They want to be better than Ethereum. Okay. So, and that's a huge, huge, huge value proposition right there. But it's also a huge claim because Ethereum is massive. Ethereum right now, if you look at cryptocurrency cap, they have $3 billion market cap. They have a lot of support from a lot of developers because they've been going on for so long. And of course, Ethereum has its own language as well. And Ethereum, they use Solitiqui and then they can compose it down to machine language. Here, they're trying to do their own language, just trying to include something different and mostly to build on smart contracts. And they've definitely seen the success of Ethereum. I mean, Ethereum has not only become a currency, but it's become a platform. It's become for decentralized apps. So many things are running on it. So many things are using Ethereum tokens. It's just absolutely insane. And it's kind of, it's trying to strive for this future where we don't have a central organization. We can cut out the middlemen, middle organizations, just have features and have programs running that. That's kind of the Ethereum dream. That's kind of the smart contract dream. So you can have, you know, gambling on here. You can have, you know, buying domains on here. You can have various other features. So that's kind of the core two features, the core two most important things about it. One is the fact that it's got its own government system. That's why it's self-amending. And also it's trying to go for a smart contracts. They eventually going to also include lots of futuristic features, such as proof of stake and whatnot. And they definitely have everything set out. I do want to say that because this is not a token sale, you're not going to get Tezos immediately. They're going to have the format of this sale is that they're going to try to raise money. That's what, you know, ICOs are as a fundraiser. You can fundraise with, you can contribute with both Bitcoin and Ethereum. And once the crowd sale starts, it's going to last 20 days and it's going to have no cap. And we'll talk about a little bit about that in a sec as well. So it's going to raise for 20 days. And once it's finished raising, they're going to start to mine the Genesis block. So that's the first block of this cryptocurrency and then start distributing Tezos out. It will not be in the form of a token. I know a lot of you are used to tokens. So it's going to be a new coin and it's going to be, the money's going to be used to fund various projects. So if you look at this, this is probably the most important slide on this white paper. They're going to use it for future research. You're going to use it for the legal services and business development. So they're kind of running this like a full on organization and depending on how much they get. So this is in thousands. So if you get six, if they get 6 million, that this would be like this. If you get 12 million, 20 million plus and all these moonshot goals. So now let's talk a little bit about competition because this year we've seen quite a few Ethereum competitors coming out. For example, we've got Quantum, we've got AntShares, the new brand brand of AntShares, they've been granted as NIO. And they are also trying to go after the smart contract dream. So there's a lot of competition out here. There's like much more off the top of my, like that kind of name off the top of my head. But a lot of things are trying to target smart contracts. A lot of the reasons why is because the Ethereum code is open source and people can start copying that. Or people are thinking this is a great new opportunity to kind of get in on smart contracts and decentralized apps. So there's a lot of interest in that and there's a lot of different ways of tackling this problem. And of course, the main competitor is Ethereum. Ethereum is also ever evolving. And that's when you have to remember that this is a new coin. While this is new, it's going to have to compete with Ethereum, which has a huge development team and more cases behind it. Like it's got more experience to say, and they've been through more. They've been through more successes and failures as well. So in that sense, they have a lot of competition for both Ethereum, Neo, Quantum, a lot of other cryptocurrencies that target smart contracts. And of course, in terms of what they offer, they every coin has something that different that they offer. For example, Ashers actually did put out quite a few new upgrades. For example, the support for dot net languages and the support for kind of running things in kind of dockers. So to say, I don't really see here in terms of technology, what they really can offer smart contracts other than a new language. So I'm a little bit worried about how much they're offering in terms of this competition in this war against Ethereum. You know, if it's if it's in terms of language and programming, you know, that's what engineers like to flock to, right? Computer scientists, they like to flock to something that's stable, learn it and use it well. And here they have a new language to learn. So I'm not really sure, like personally, this is my own personal opinion. I'm not really sure if people are going to flock to here and move away from Ethereum and not go to any other language. I mean, I do see, you know, dot net being interesting with Neo because, you know, there's a lot of people who already know a lot of dot net languages, C sharp, whatnot. But here, if you have to learn a new language, why should developers come here to work with you? I mean, yes, you're compatible C++ and OCaml, but still, I think I definitely think there's a lot of risks in taking on a new language and taking a new language to work with you. Taking a new language for smart contracts. So that's one thing. There's various, there's a lot of competition. And there's also the fact that you have to learn a new language for this. It does say there are advantages of using a new language over Solidequery. So perhaps maybe it's going to have its own niche and it's going to develop from there. So what do I think about this coin? So you can bring it down into two factors if you're going for a short term. So basically a lot of people went into basic extension toker can investing and then seeking to cash out and then few followers. And then few following weeks. So that's a short term investment goal. People were just trying to get in on the ICO hype or long term objectives. If you want to wait a few years and see where this goes, because of course, a lot of this is unproven and technology does not move at the speed of investing. So let's take a look at the first proposition. So if you're looking into a quick buck with this, I think this is going to be really, really hard to achieve that because with ICOs that have a cap, once the cap is reached, then the coins become scarce. Right. So there are people who missed out or couldn't get it. And that's why the value of the coin increases once it hits the market, because a lot of people who missed out and they want to kind of invest again. So those are coins that have a maximum capital cap. So, for example, basic attention token was asking for $35 million and it was really sold out within the first 20 seconds. And that's why it will almost triple its value once it hit the open markets. Well, in here, they have a 20 day no cap funding. So that's going to be insane. So anyone who actually wants this coin can buy it. You know, without a cap, it also means that they don't really know how much they're going to get. You know, they have, you know, 6 million, 20 million, 100 million. It's going to be really hard for them to know how to get what to get. And I think that's what worries me a little bit for a short term goals. Their objective, their no cap 20 day ICO really doesn't favor people who go in for a short term because everyone can get it. And because it's unpredictable how much you're actually going to get. So in the short term, I don't really think it's a good idea to go in. We also seen something like Bancor. Bancor had a no cap for three hours. All right. So just so everyone can get in on it. And as a result, it was really, they got a lot of investment. And when Bancor hit the open markets, there wasn't a big premium for Bancor. They didn't make that much. You couldn't flip it for that much once it hit the open markets. So yet, I think this, if you really want to look at this, I think this is definitely for a long term sort of coin. Because it is a new coin, it's not a new decentralized app. It's not a token. It does have, it's a lot of intrinsic value. It doesn't offer an alternative for, you know, for Ethereum or whatnot. So that's probably one of the biggest advantages of Tesla's, which is that it is something new. It's something different. It's not a token. It's a platform. And that's probably the biggest value for off it. And it's also got a new language. So it might have a new niche. You know, having a different language, having an alternative, there's always people who are going to look forward towards that. But definitely there's also a lot of competition as well. You know, especially right now with smart contracts being so hot as it is with, you know, China's new, you know, smart contract token, Neil, with Quantum, just even, I forgot to say this, EOS. EOS has so many things built into it for forming, not just smart contracts, but for forming decentralized apps. It might be, of course, they do have advantage. A lot of their team was actually working in big banking before, so they might have this legitimacy with banking and they might target the banking sector a bit more. But that said, you know, even Goldman Sachs and whatnot, they either support Ethereum or part of the Ethereum enterprise alliance, or they are developing their own private blockchain. If this coin doesn't get that much, I think if it doesn't get that much at the ICO, it might grow astronomically later. But if it gets a hundred or two hundred million, then it's going to be a little bit sketchy to see what's going to happen in the future. So I'm a little bit iffy about the long term. I do have, I do, I recognize the advantages and disadvantages. And of course, if you guys are interested, do your research before this, there's a white paper, there's a website, look at all the people behind it. And that's the best way to know what's happening, because without knowing what's happening, if you just blindly throw money into something, that's never a good idea. You know, the fear of missing out is great, but we also see a huge uncertainty in the market right now, especially this fatigue with ICOs. That's my summary of the Teslos and those are my personal opinions. You're free to comment below. I would love to hear what you think of Teslos as well. And I definitely want to start a conversation here. My channel has always been having a two way conversation. So you can agree with me, disagree with me, you know, criticize me or, you know, support me on what I think about this. Thank you so much for watching. See you next time.