Dr Müller remarks- Tezos Concept is Old and Stupid
Jan 23, 2018 Posted / 44866 Views
Tezos is keeping in the news for all the wrong reasons as a top attorney in the digital currency space has issued sharp cautionary notes for everyone who desires to dabble within the burgeoning Initial Coin Offering (ICO) market. Dr. Luka Müller, a partner at Switzerland and Crypto Valley-based law firm MME, who once partnered up for setting up the Tezos Foundation is an expert on ICOs. He remarked in a recent interview that the model for Tezos is quite unintelligent and old.
Read More Related Articles
Experts of ICOs are one of the most sought-after people these days and also appended as a rare bird. The MME firm is accounted among its clients Ethereum, Bancor, and the ill-fated Tezos Foundation. It is well acknowledged in the cryptocurrency and blockchain circle that if Dr Luka speaks it should be one thing that is probably a good thing for future ICO participants to listen. In an interview with Reuters, Dr Müller told
“The Swiss foundation actually is a very old, inflexible, stupid model,”
He further insisted
“The foundation is not designed for operations. You as a user must be absolutely clear — and if you don’t understand it, keep your fingers away — that if you have an ether or a bitcoin, and it does not work, you have nobody to claim against.”
Media has been reporting about the drama related to tezos, which is why it appears that Dr Müller is quite discourteous. The Swiss foundation concept is front and centre in the media and it was recently reported how the Tezos meltdown occurred and everybody was soon rebelled in the cryptocurrency space. About two weeks before Christmas, its top board members renounced and weeks prior to that, The Foundation has issued warnings owing to its legal expenses originating from its ICO lawsuits. Apparently, its strategy needs serious reassessment.
The inspiration for the foundation is a kind of no profit. It bears the status of being not for profit venture and as such list investments as contributions, particularly for meticulously tech-involved projects that might need incubation. Dr Müller proposes structuring a corporate model in its place and as it does not operate as a foundation umbrella for most ICOs:
“If you structure your token sale in a way that it would look like an initial public offering, then even if you launch a (blockchain) protocol, the foundation is maybe not suitable. The If.the background is more an investor environment rather than a technical environment, yes, do all the registrations. If you want to sell it if you want to be active and actively promoting it in the US, apply U.S. law.”
Tezos was able to hitch a quarter billion USD during its ICO in a year that saw over 5 billion USD in ICOs overall. Interestingly, Switzerland solitarily hosted over 600 million USD in ICO projects, and so its specialized financial sector is among the most knowledgeable and experienced in the world which is why it is highly sought in consultation.
“Under MME’s guidelines, tokens become property with an enforceable right once the blockchain launches and the token receives a spot on the first block. Before the launch contributors have no such rights,” Reuters notes.
Dr Müller’s foundation concept was to allocate funds explicitly, shielding developers eventually in terms of liability. He explains,
“It’s a concept of a donation, from which it is clear you donate. You donate to a structure and you donate to a team and to their idea.”
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.