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Tezos (XTZ) Records Years Biggest Loss Amongst Top Coins

Team businessman with chart in the fall

In December last year Tezos (XTZ) was looking strong after a record-breaking ICO which raised the company over $230 million. However, after finally being listed last week following a legal battle that delayed the tokens launch, its value plummeted to 78 percent below peak.

The drop, from a high of $10.51 in December 2017, to the current price of $2.31, is the biggest loss this year amongst the top 20 coins. At one point on July 6th, it briefly dipped as low as $1.22.

Internal Disputes

The decline is due to a long period of internal management problems that led to regulatory issues and eventually legal battles. During this period the coin was unable to launch on any exchanges and over time investors grew increasingly skeptical. Over time, the value of Tezos dropped to around $4.00 and when it eventually managed to go live on gate.io on July 1st last week, panic sell-offs cut another 50 percent of its price.

During the initial ICO, Tezos looked very promising, with claims of being the first self-amending cryptocurrency and even posing a possible challenge to Bitcoin. Its ICO was so successful it broke all previous records at the time.

However, disagreements amongst shareholders and public disputes led to resignations and a class-action lawsuit. It appeared that the Securities and Exchange Commission (SEC) would give it further trouble by deeming it a security and subjecting it to Regulation D reporting.

Positive Future?

The price of XTZ has since recovered slightly to $2.33 at the time of writing and appears to be remaining steady in that region. Considering that initial sales were offered at $0.47, early adopters can still enjoy a good return on investment. While admittedly a large part of Tezos decline can be blamed on the delayed listing and legal issues, the majority of other cryptocurrencies have seen declines of over 60 percent in the same period.

The Tezos Foundation have now regained stability in their internal infrastructure and following a brief issue regarding KYC/AML regulations, they appear to be back on track. Hopefully, with any legal issues and internal battles behind it, Tezos can revitalize its image and enjoy future growth.

Image From Shutterstock

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