When Tezos announced their beta platform was finally ready to launch and investors would receive their ICO tokens, many remained skeptic as it’s been a year of continued delays for the Tezos Foundation. As investors waited for the announcement of the launch, they were thrown a curve ball which has left many frustrated.
Tezos announced they will now require KYC/AML (know-your-customers, anti-money laundering) documents of all contributors to the ICO held back in July 2017. All investors must reveal their identity before receiving their purchased tokens. While KYC/AML rules is starting to become more of the norm now when it comes to ICOs, there was no mention of this requirement during the ICO stage.
When investors reached out to Tezos co-founder Arthur Breitman, Breitman denied responsibility and claimed it was out of his control. There won’t be a way to receive Tezos ICO tokens with out completing KYC/AML procedures.
The Tezos ICO had one of the largest targets goals in ICO history which raised a total of $232 million. The hype quickly dwindled fast as the year following the ICO sale was full of team infighting, consumer lawsuits, and failed launched attempts. Tezos ICO is the perfect example of why it is still super risky to participate in ICOs. You’re essentially relying on a new team to follow up on what they promise to deliver before a product is even created. Regulations on ICOs still remain on the fence and can change within a matter of months, changing the legalities of investing.