Disappointed investors who bought Tezos tokens during its initial coin offering (ICO) are tired of the company’s internal conflicts and are proposing a new board of directors in the hope that the change would get the platform back on track, the Wall Street Journal reports.
Tezos is a blockchain project that conducted one of the largest ICOs in history, raising $232 million in July 2017. However, it started coming apart at the seams because of infighting between Tezos founders Arthur and Kathleen Breitman, former employees of Morgan Stanley and Accenture, and Johann Gevers, the president of Tezos Foundation, which was responsible for conducting the ICO.
While Tezos top executives went through a series of lawsuits and controversies, the project stagnated and investors couldn’t see their tokens surge in price, as one would expect with most sound blockchain projects. Some crypto market participants even hinted that the whole scandal might have been planned so that the founders would benefit from the funds raised.
Currently, supporters of the Breitmans have created T2 Foundation - a new non-profit to replace Swiss-based Tezos Foundation, which is managed by Gevers. They hope this will help revive the project. Stakeholders are now pushing ahead with a proposal to elect a new board of directors.
“There has been a totally inadequate deployment of resources,” by the current foundation, noted Olaf Carlson-Wee, founder and CEO of cryptocurrency investing fund Polychain Capital, which signed on to become one of the new foundation’s seven directors.
Carlson-Wee, who is expected to become the most high-profile member of the T2 board, said the Tezos Foundation has “drastically mismanaged” the funds raised from the ICO. He added that Tezos investors “needed to take action, to ensure there is a better governance model.”
Currently, the Tezos Foundation still has control over the $232 million raised during the ICO. Gevers would not comment on the matter.
We will monitor the situation and the impact of the new proposal.