Hard Fork Rumors Send Tezos (XTZ) Tumbling
Tezos (XTZ), one of the top-performing cryptocurrencies of 2019, is tanking this week due to an apparent fallout between the token’s non-profit foundation and OCamlPro, a French developer group that is eyeing a hard fork of the Tezos network. The hard fork speculation was triggered by a leaked email from Starchain Capital, a new crypto fund that is partnering with the French developer to create a new blockchain platform called Dune Protocol.
XTZ Price Update
The value of XTZ tumbled 7.2% on Thursday to reach $1.15, its lowest in over two weeks, according to CoinMarketCap. XTZ is eyeing a weekly drop of 10%. By comparison, bitcoin (BTC) and Monero (XMR) are up double digits over the past seven days.
Technical analysis reveals that XTZ is likely headed lower in the near term. As Hacked reported earlier this month, Tezos’ range low of $1.04 makes it highly attractive for bottom-pickers.
After being one of the top-performing tokens of 2019, XTZ is down more than 37% from its yearly peak. Its lifetime return on investment (ROI) is 144%.
At current values, the Tezos network has a total market capitalization of $757 million, placing it 21st among active blockchain projects.
Tezos Hard Fork?
An apparent fallout between the Tezos Foundation and French developer group OCamlPro made headlines this week after a leaked email from a partner organization revealed plans to fork the Tezos network. OCamlPro has reportedly partnered with crypto fund Starchain Capital to fork the Tezos blockchain in September, creating a new protocol called Dune. As The Block reports, OCamlPro and Starchain are looking to raise $1 million to fund the new project.
OCamlPro was a recipient of Tezos funding until governance issues forced the non-profit to reconsider its relationship with the French developer group. Those issues were laid out in a June 16 blog post. As the post reads, the Tezos network isn’t concerned with a hard fork per se, but with the unfair practices of OCamlPro’s management.
“It’s worth remembering that anyone can fork the Tezos software, which is open source,” the blog reads. “The issue is not that they intend to fork Tezos, but the alleged manner in which OCamlPro leadership conducted itself, in bad faith, and misrepresentation of historical behavior to be in the best interest of the community.”
Tokenization prospects have made Tezos one of the most closely-watched blockchain projects of 2019. Earlier this year, Coinbase announced that institutional investors will have the opportunity to earn interest on their XTZ holdings by participating in the network’s proof-of-stake mining. Read more: Tezos: The Surge Continues. Should You Buy XTZ?
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.