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.”
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:
If you “donate” to an ICO you're taking a huge risk and you completely depend on that team and what their legal counci tells them to do. If you can't live with that, don't buy ICOs. It's your own personal responsibility. (Disclaimer: Tezos is a dumpster fire) /end
— WhalePanda (@WhalePanda) June 11, 2018
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:
Quick guide to whether you'll be getting your $XTZ when #Tezos launches pic.twitter.com/rTNsUCLlde
— andimule (@andimule) May 31, 2018