Tim Draper-Backed Project Tezos Provokes Community Again With KYC Requirement

Avi Rosten

The community involved in Tezos, an ICO designed to improve blockchain governance and encourage innovation, have voiced their dissatisfaction after the project announced that investors will have to undergo KYC (Know Your Customer) checks in order to access their tokens.

Backed by famous bitcoin billionaire and venture capitalist Tim Draper, the ICO launched in July 2017 and raised $232 million with the promise of a unique proof-of-stake blockchain.

Designed to be a self-amending crypto ledger - which can adapt to changing technology - the ICO also allows for “on-chain-governance,” where stakeholders can decide on future changes and implement innovations.

Since then however, Tezos has had a difficult time as controversy between the leadership and a series of four class-action suits accusing the foundation of investor fraud - have set the project back - with the Tezzie (XTZ) tokens still yet to be released.

The latest controversy for the beleaguered platform comes after they announced on their site that users who want to access their tokens will need to undergo a KYC/AML (Anti Money Laundering) procedure to confirm identity:

“The Tezos Foundation requires contributors to its fundraiser to complete this KYC/AML process in order to access their recommended allocations in its proposed genesis block.”

Tezo Website

After the latest move prompted the backlash on social media, popular crypto commentator Whale Panda offered a different perspective, arguing that this kind of risk was part-and-parcel of the ICO market:

With co-founder Arthur Breitman on Reddit denying responsibility for the latest move, remarking that the requirement was “not my call,” this latest move comes a week after another controversy involving Tezos.

Last week many users complained after they realised that they lacked a special password required to access their tokens - a facet of the signup many users claimed was unclear:

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.