Blockchain Investor Analysis

Tezos

XTZ
Current Price $2.21 (+0.31%)
Tezos (XTZ) was founded by Arthur Breitman and Kathleen Breitman, who began developing it in 2014 with the help of a team of developers. Tezos is designed for deploying a blockchain that can modify its own set of rules. To do this, it uses an on-chain governance model.

Our Rating:

Market

Problem that it solves

Tezos aims to solve the problem of governance for blockchain networks.

Customers

Producers of Dapps and those who want to trade Tezos are the most obvious users.

Value creation

If you like a coin that earnestly tries to be as democratic as possible, you're going to love Tezos. This concept breeds value.

Market structure

The market is still emerging and has potential for more growth.

Market size

The smart contract market potential is potentially limitless.

Regulatory risks

The regulatory risks are lower than average because of the democratized infrastructure. But if regulators wake up one morning in fear of proof of stake systems, then Tezos would be in the crosshairs.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

Tezos was built on a new blockchain, but it has performed well.

Lead time advantage

The concept of a more democratized version of Ethereum was novel and has paid off.

Contacts and networks

Tezos strong market position gives it access to key players — more so than the influence of its founders.

Average Competitive Advantage Score

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Management Team

Entrepreneurial Team

So far, Tezos has been successful and has overcome challenges.

Industry/technical experience

They've been at it since 2014, so their dues have been paid.

Integrity

Although the founders try to come off as transparent, there has been too much controversy sourrounding the team and the management of the project.

Average Management Team Score

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Token Mechanics

Token required

Yes, a token is required to access the network.

Value added

The token is, essentially, another one of those, but the Tezos concept gives it some implicit strength.

Decentralized

Liquid proof of stake and the democratized structure of Tezos help it stay decentralized. But you could easily wind up with a few big players controlling major decisions if they win the hearts and minds of enough users.

Token supply

The ICO resulted in a finite number, 763.3 million tezzies.

Public exchange

XTZ can be exchanged on many platforms.

MVP

Tezos is up and running, despite some controversy.

Average Token Mechanics Score

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User Adoption

Technical difficulty

Tezos is more complex to understand than a simple digital currency network, like Bitcoin or Litecoin.

Halo Effect

Tezos' connection with its competitors has helped boost its profile. But as a standalone project, it has little Halo Effect.

Buzz

When the price moves, people talk about Tezos but it the project does not have anywhere near the buzz as some of its competitors, such as Ethereum or EOS.

Average User Adoption Score

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Overall Score

Weighted Average of the five section scores above

Blockchain Investor Analysis

Tezos is powered by an interesting concept: a more democratized Ethereum. Democratization is a key thread in the crypto fabric, and Tezos' dedication to this ideal has gained it the respect of many in the space.

For Tezos to have long term success, its management will have to maintain a polished profile and avoid controversy. If this is accomplished and people continue to enjoy the liquid proof of stake approach, Tezos could continue to be an important contributor.

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