Most cryptocurrency users will have heard of the Tezos ICO. The Tezos Foundation, a non-profit entity designed to oversee the development of this ICO project, is now launching a US$50m venture fund. It appears this new fund will focus on startups and developers who build on top of the tezos platform in the future. Using some of the money raised during the crowdsale and putting it to good use is always a solid idea.
It is always interesting to see ICO projects tackle the future of their development roadmap. In the case of Tezos, that future looks quite promising, assuming the company can convince people to create applications. The governance-boosting blockchain protocol needs more use cases moving forward. Launching a US$50m venture fund to achieve this goal makes a lot of sense. Still, it is quite an intriguing decision for a project which raised US$232m during its ICO. Surely they can pay enough developers outside of a venture fund to get things moving.
Investment Fund is an Intriguing Decision
The venture fund announced by the Tezos Foundation is intriguing. They will use the money to fund startups and developers building on the tezos platform. An interesting decision, indicating there aren’t too many developments taking place right now. Ensuring the blockchain platform works in the first place is of the utmost importance. Coming up with new solutions will be quite challenging despite raising over US$200m.
Moreover, it appears the Tezos Foundation will liquidate its Bitcoin Cash holdings. More specifically, the organization holds a fair amount of BCH tokens. These will be sold off over an extended period of time. No specifications were provided at this time, though, leaving much to speculation. Considering the negative pressure across all BCH markets already, this news will result in more downward momentum by the look of things. Considering how the company raised over 65,000 BTC, they may hold a similar amount of BCH right now. Such a sale would crash the Bitcoin Cash market by quite a margin.
It remains to be seen how this investment fund will play out for Tezos. The platform itself is still under development as we speak. Attracting new developers to explore this technology is the right way forward. It is good to see them use some of their own money for this specific purpose. It is unclear what type of projects the Foundation is looking for, though. With this smart contracts and PoS consensus algorithm, opportunities are plentiful. It will be interesting to see how this development fund will play out in the end.
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