XTZ Bearish Technicals Form Despite Strong On-Chain Growth

The XTZ bearish technicals formed despite the strong on-chain growth of the coin that was seemingly temporary so let’s read more in the Tezos price news.

The XTZ bearish technicals formed for both XTZ/USD and XTZ/BTC pair. Tezos is a decentralized smart contract and application network with the on-chain governance layer designed to enable efficient network upgrades and to provide a transparent stakeholder community. Comparing the coins by using the staking mechanisms shows that XTZ is third by market cap and second in transactions per day, fourth in daily transaction volume and far behind in daily active addresses and commits on the main project repository. Portions of XTZ were first conceived by Gordon Mohr and LM Goodman back in 2013 while Kathleen Breitman and Arthur Breitman released the first whitepaper on Tezos in 2014.

The initial development started in the setting of both ETH and BTC scaling and governance dispute so the project went on with securing funding in 2016 which was provided by Polychain Capital. Some notable advisors also include Zooko Wilcox and Amin Gun Sirrer. The Swiss-based Tezos foundation was created in 2017 with the goal of providing support for XTZ Technology and the community. The initial coin offering happened in 2017 when each token was sold for $0.47. the ICO raised 65,000 BTC and 325,000 ETH, reaching a sum of $232 million, becoming the largest ICO at the time.

After the ICO, there was a dispute between the Tezos Foundation president Johann Gevers and the Breitmans so in 2017 a class action lawsuit was launched against Tezos because of “violation of the registration and anti-fraud provisions of the federal securities laws as well as state false advertising and unfair competition laws.”

The Tezos Foundation announced a move to settle the pending $25 million consolidated class-action lawsuits after spending two years in court. A post from the Foundation stated that “it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts.”

The XTZ ledger uses a delegated proof of stake consensus mechanism with a target block time of one minute and annual inflation of 3.6% after the upgrade of the protocol. Just under 80% of the current circulation supply participates in staking or baking on the chain which is the second biggest USD value of all proof of stake chains at about $1.41 billion.