Tezos (XTZ) can rightly be counted among the discoveries of 2021. The little-known token showed explosive growth against the background of the general growth of the cryptocurrency market in the first half of the year.
The second breakthrough came at the very height of the autumn altcoin season. In the first ten days of October, the price of XTZ rose to a local maximum. This is how the market reacted with the implementation of the planned renovation of Hangzhou. The price rollback was interrupted by the news about the establishment of partnerships with Ubisoft and the Rarible non-fungible token market. However, the coin failed to hold its ground. It was a great moment to take profits by exchanging XTZ to USDT.
What is Tezos
Tezos is a fourth-generation blockchain platform designed for cross-border payments, hosting decentralized applications, and encoding smart contracts. At the moment, the platform has conquered a relatively small but promising niche of STOs, in other words, tokenized shares.
The Tezos decentralized network is open source and has a modular architecture. One of the most important features of Tezos is the ability to change itself without the risk of hard forks. The branching of the blockchain and the split of the community in the current conditions of tougher competition can slow down the development of the project or even threaten its continued existence.
The platform uses an improved version of the Proof of Stake consensus mechanism. That is, any user who owns XTZ coins can take part in confirming transactions, regardless of the availability of a technical base or specific knowledge.
What’s wrong with XTZ
Tezos’ path to the market has been rocky. Almost immediately after the successful ICO, serious disagreements arose in the founding team. Ultimately, the proceedings moved to court.
In addition, investors have turned to the SEC, claiming that the XTZ token is unregistered securities. Although no real conclusions were drawn, Tezos had to pay investors and lawyers about $ 25 million.
Due to infighting in the team, the launch of the main network had to be postponed to a later date. The quite natural collapse of XTZ only exacerbated the growing distrust of the project.
The team adequately passed all the tests, managed to win its market share and the project is gradually developing. XTZ has not been declared illegal, however some legal status uncertainty remains.
XTZ price history
Shortly after a successful ICO in 2017, the coin rose to its all-time high of $12.19. Then the price repeated the classic scenario of young cryptocurrencies and began to decline, reaching $1.76 by the beginning of February 2018. Overall, 2018 proved to be a challenging year for XTZ, closing at $0.46 per coin.
Over time, the coin partially regained its positions, but until February 2020 it was trading below $2. 2020 brought the coin a local maximum at $4.48 and closed quite optimistically at $2.02.
The expansion of partnerships with respected companies and the general trends of the cryptocurrency market have led Tezos to new achievements. In early May, the coin reached $8.4, and after a summer decline, it briefly rose to $9.18.
Tezos is currently trading at around $4, more than half its October high.
Is it worth investing in Tezos
During its existence, Tezos has demonstrated outstanding resilience and comparative stability.
These characteristics give reason to consider the coin as a potentially profitable investment in the long term.
Analysts from various agencies almost unanimously forecast XTZ to grow by the end of the year and call figures close to $6.
However, before investing in any digital assets, do your own market research and calculate the possible risks. Take your time, the crypto exchange platform LetsExchange is always available, and a hasty decision is quite capable of becoming the beginning of a financial disaster.
