Bitmex Clients Crushed as Tezos Futures Collapse - “People had no idea” says avid Core supporter and Bitmex CEO Arthur Hayes
Excerpt:
In July, Tezos rises $232 million in the largest ICO capital raise to day. This morning, XTZ is plunging — lower by more than 20%, thanks to a blog post by the founder — which revealed internal discord.
From the outset, we worked nonstop to make the transition as smooth as possible, making suggestions to the foundation to help them continue the work we had been doing. However, getting anything done proved difficult. Recruiting came to a standstill and communications to the community languished waiting for approval.
In early September we became aware that the president of the Tezos Foundation, Johann Gevers, engaged in an attempt at self-dealing, misrepresenting to the council the value of a bonus he attempted to grant himself. We have been working with the Tezos foundation to resolve the matter and have advocated for his removal from the foundation council. We are confident in the council’s ability to handle this sensitive matter with care and diligence. In the meantime, Johann’s operational role in the foundation has been suspended, pending an investigation by the council’s auditor.
Up to this point, we have respected the confidentiality of this matter at the request of the foundation council, so as not to let a media uproar become a distraction during deliberations.
A critic emerges.
People had no idea what was going on in Tezos,” said Arthur Hayes, a former market maker at Citigroup Inc. who now runs BitMEX, a bitcoin derivatives venue in Hong Kong. “There’s a lot of public information on what’s going on with a project, but most people are too lazy to do any real homework.”
Thank heavens the ICO market isn’t beset by onerous regulators and instead discloses news items, such as business grinding to a ‘standstill’ in late night blog posts.
Tezos December futures (coins that haven’t been created yet) are down more than 55%.
Original article (ibankcoin.com):
Fraud investigation (the-crypto-team.com):
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