Tezos Community Upset Over Class Action Lawsuit, Claiming It Is Damaging The XTZ Token Price
Any time a class action lawsuit takes over a cryptocurrency by a community member, there is usually a good majority of the rest of the community that supports the efforts. Perhaps this support is garnered over mutual dissatisfaction with the performance of a platform. However, that is not the case of the Tezos within their own community.
A few people have decided to lead an attack against Tezos in the form of a class action lawsuit. Led by plaintiff Arman Anvari, the rest of the community says that Anvari clearly does not represent the community. When Anvari was asked if he felt differently, he took a different route, clarifying that he completely agrees with this notion from the community.
There are a lot of reasons that the use of Anvari as the chief plaintiff has been bad. His aggression has led him to initiate multiple death threats against Kathleen Breitman, who is the co-founder of the blockchain. He also has admitted multiple times that he violated the terms and conditions of the lawsuit, and he’s even asked to be taken out of the case. Still, his removal would not do much good, since a group called the Tezos Legion believes that other plaintiffs that could ultimately lead the lawsuit are equally terrible.
Along with the problems with Anvari as the chief plaintiff, there are also issues in this case regarding the actual lawsuit. First off, the terms and conditions specifically state that the European courts should be used for legal action, considering that it was founded in Switzerland, albeit by two Americans – Arthur and Kathleen Breitman. The company was not even able to launch until June last year, despite plenty of time under development. Still, when compared with other ICOs, the Tezos Legion sees the launch as successful.
The legion adds,
“Delivery of a live, well-functioning network stands in direct opposition to most projects in the blockchain and cryptocurrency space. The Tezos mainnet has functioned well for nearly 5 months. Over 80% of activated tokens are actively baking on a network supported by ~460 bakers in 33 different countries. And there are Tezos developer teams on 5 different continents.”
Another concern has to do with the purchases Anvari has made of Tezos tokens, because he continued to purchase them after the lawsuit. He even acknowledged that he knew that they weren’t considered securities, even though part of the lawsuit says that the platform violated securities laws. If the tokens are not considered securities, they would not be subjected to the laws that Anvari says that they are violating.
There’s even a petition circulating right now, with over 1200 people that do not support the class action lawsuit taking place against Tezos. Most users are satisfied with the self-amending blockchain and its services. Tezos is much like Ethereum, in that it has its own coding language that allows them to create smart contracts.
Still, Tezos is new, and the majority of the community see this as an opportunity for the platform to grow. The same group is completely against the lawsuit that it presently happening, especially considering that the circumstances could have been many works.
When the ICO opened, the cost of a token was about 47 cents, though it presently is valued at about 40 cents instead. Still, when compares with the differences between the ICO token price and the current price, Tezos is doing much better than others. A perfect example is the ICO price for SONM, which was about 59 cents. However, with the crypto winter and the lack of faith from their community, its value is less than 2 cents right now.
David Silver, who was formerly a lawyer in the Tezos class-action lawsuit, said that it does not really matter who can pursue a class action lawsuit against the platform because the case can still go on. The question is not about the support of the community; it is about the laws that Tezos either broke or didn’t break.
No matter what happens against them, the Tezos Foundation has expressed that they plan to fight back.