Tezos (XTZ) Value Soars 70% After Remarkable Blockchain Vote
Tezos is an embattled DApps and smart contract blockchain which first made headlines in 2017 by raising $232 million from their ICO. It was not all good news for the company since then, but recently, it seems that things are looking up for Tezos. Becoming unlikely trading hit this week, Tezos’ price has shot up an incredible 70% in the last couple of days leaving the XTZ token holders ecstatic and everyone else in a dilemma.
Before diving into theories of how the coin managed to turn its fate around, it is important to see that what is it that makes Tezos unique and what is the technology behind it.
One of the significant problems with nearly all of the cryptocurrencies these days is the issue of not having any resourceful ways of implementing upgrades. To make any changes, the majority of coins need a hard fork; for instance, the one Ethereum had last month.
The requirement of a Community consensus is what’s wrong with a hard fork. If there is any disagreement with even a small portion of miners regarding the upgrade, then there might be a split, like what happened with Bitcoin Cash.
Now, to get rid of this problem, a voting system has been created by Tezos, in which, token holders can vote on any decisions about the upgrades to the coin. Providing that the projected upgrade collects enough votes to be able to get implemented, it prevents hard forks and other similar complications inborn in upgrading the chain. This is an intriguing technology which if proves feasible can further be implemented by other coins as well.
The sudden ascent of Tezos Traders
Reports have confirmed XTZ’s unexpected Bull Run, initiating on March 19. The XTZ token was trading at just under $0.50 for a long period before it delivered three-day gains of 70 percent when the XTZ/USD 0.66749 +0.02% shot up to an epic rise of more than $0.83.
Formerly being traded range bound between $0.33 and $0.49 ever since the start of December, this performance has resulted in an impressive change of fate for the token.
Why is the Tezos kite soaring high?
The Tezos’ upgrade system has been known ever since its launch, but it has been put to the test only as of late. Recently, numerous holders of Tezos token voted on a proposal for raising the gas limits, lowering the staking requirements and to allow for bigger transactions, which implies that fewer coins will be required now, to become a baker, alike to a block validator in the Tezos terms.
Although, it is not possible to certain how or why any coin dumps or pumps, regarding the unavailability of any news from Tezos sources, it can be concluded that the success of the voting system has been the reason behind the surge in pricing. Almost on the road to making blockchain history, Tezos has suffered almost a year and a half of downbeat news before this upgrade which will be implemented without a central authority or a hard fork.
The upgrade process still has three months before completion. Therefore, stating that there is still time for it to go downhill.
Is this false optimism?
After its giant initial coin offering (ICO) raising more than $230 million, there were many PR disasters involving Tezos in the following eighteen months. This involved a jumble of reshuffles, fighting among the executives, and aggravated token holders from the lack of progress which ended up filing lawsuits against the platform.
Thus, the surge appears to be the product of recent signs of progress, i.e., the completion of Tezos’ voting procedure leading futures upgrades.
Although Tezos recently suggested that it was excited about the progress of the system, it was stated by the developers previously that the upgrades might not be of tremendous interest to the larger community.
A media appearance by the billionaire Bitcoin advocate, Tim Draper- a significant supporter of Tezos and also one of its investors and founders has been involved in the theories circulating about the platform.
In the documentary, ‘The Inventor: Out For Blood In Silicon Valley,’ Draper is seen defending Elizabeth Holmes, the founder of the company while wearing a Bitcoin tie. Even though the tie is making regular media appearances, this time it reflects on the perspective of Theranos, to make a connection with the mainstream, fresh audience.
Tezos had itself questioned Draper’s fashion choice almost a year ago, querying whether he had a similar tie with the Tezos logo.
Only time will tell if the success is here to stay, but for now, Tezos holders who had not given up hope are finally getting compensated.