- Alex Saunders, founder, and CEO of the Australian cryptocurrency and blockchain news website Nugget’s News.
- Tezos is trading at $2.62 with a market cap of $1.62 billion, having declined 0.07%.
- Saunders believes that Tezos is simply a bubble waiting to burst soon.
Alex Saunders, founder, and CEO of the Australian cryptocurrency and blockchain news website Nugget’s News. He has taken an open jab at Tezos (XTZ) for taking the 10th spot on the top 10 cryptocurrencies by market capitalization. As of press time, Tezos is trading at $2.62 with a market cap of $1.62 billion, having declined 0.07%.
In a Twitter post, Saunders has called out Tezos, asking out to his followers and the fellow crypto community to be more realistic on how Tezos has made it to the top 10. He asks how many developers, apps, community, or network presence Tezos holds to have that spot.
Saunders also says that he has information that says forks are happening within Tezos due to community disagreements. It simply is just the “euphoria” stage of a bubble, and as soon as it ends, Tezos will plummet in value. Saunders ended with a rhetorical question asking his followers if anyone could give him a good reason otherwise.
Tezos Top 10? Let's be real, how many apps, devs, community & network effects does #Tezos have? I've already heard of forks happening because people aren't happy. 80% coins are staking reducing available supply. This is going to fall hard once the euphoria ends. Am I wrong? $XTZ pic.twitter.com/90opLiYKf9
— Alex Saunders (@AlexSaundersAU) February 9, 2020
Saunders has previously ridiculed Tezos and comparing it to pop culture references showing acknowledging insignificance to the cryptocurrency. Saunders seems to find no real economic utility or a strong community backing Tezos to justify its position among the top 10 cryptocurrencies.
Thus, lacking the technological prowess needed to stay afloat and keep growing at the rate it has been over the past few weeks, Saunders believes that Tezos is simply a bubble waiting to burst soon.
This period in the market where a surge is occurring is simply due to market excitement and will soon die off due to the lack of any real backbone to the cryptocurrency, as predicted by the news website CEO.
Although Saunders predicts Tezos to die off or depreciate soon, many other market analysts say that Tezos’ is now approaching a historically difficult resistance level at $2.70. At the rate, the prices are surging, and given the positive market sentiment, there is a chance that Tezos might break through the barrier.
If XTZ manages to clear this resistance point, the analysis predicts that the cryptocurrency could continue surging up until $3.66 doing a 40% climb. What sets Tezos apart from other top cryptocurrencies like Ethereum or Bitcoin is that it relies on a proof-of-work consensus model rather than a proof-of-stake consensus.
It is also built on technology that allows for changing protocols and implementing new ones through an on-chain governance model while providing the least disturbance to the network.
The Tezos Foundation is the Switzerland-based non-profit firm responsible for managing the Tezos blockchain, and Tezos garnered one of the largest ICOs during its release in 2017, raising $232 million.
Tezos was also chosen in 2019 to be a platform for offering Security Token Offerings (STOs) by a Dubai-based asset manager, and a financial group also plans to offer tokenized real-estate on the Tezos blockchain at the St. Regis resort in Aspen.