Kathleen Breitman is the CEO of Tezos. Along with her husband they are making a name for themselves in the blockchain market. To know more about Kathleen let’s talk about 15 things you did not know about Kathleen Breitman.
Kathleen grew up in northern New Jersey. Her father was a Bronx-raised contractor and mother was an Irish elementary school teacher. She was on the golf team at her all-girls Catholic high School, Immaculate Heart Academy. She attended Cornell University and graduated in 2012.
Kathleen met her future husband Arthur at Anarcho-Capitalist Meet up in New York in 2010. In spite of having different personalities they both got along really well. They got married in 2013 in a ceremony in France. They live at Mountain View, California.
In college, she was a Robert L. Bartley Fellow for The Wall Street Journal. Kathleen worked in Cornell University in New York as a consultant for Accenture and other companies. She is a former employee at the hedge fund Bridgewater Associates.
4.Honeymoon cum Ethereum study
On their honeymoon Kathleen’s husband took a printout of the entire Ethereum codebase. Arthur found that Etherum’s governance mechanism was too central and controlled by founder Vitalik Buterin and the Ethereum Foundation.
Kathleen’s husband got her interested in Bitcoin by being all enthusiastic about it thanks to his mathematical background, at a time when hardly anyone had any knowledge about it. Kathleen has extensive knowledge in blockchain technology and along with her husband released the white paper in 2014 providing Tezos as a solution to eliminate these weaknesses.
Kathleen along with her husband Arthur founded R3 which was a software enterprise firm focused on distributed database technology. She was a senior strategy associate at R3, a blockchain consortium of more than 70 financial firms.
Tezos was launched in July 2017 by Kathleen and her husband Arthur. Tezos allows for innovation to happen in a systemized way as opposed to one born of politics. They both did not like politics so made sure that there was no politics involved in Tezos.
Arthur wrote in his paper, “While the irony of preventing the fragmentation of cryptocurrency by releasing a new one does not escape us,” and ended his paper by saying that Tezos aimed to be the last cryptocurrency.”
Tezos is a self-amending cryptocurrency that can incorporate the best ideas on the market.
7.Kanton of Zug
The Breitman’s were looking for a place which was favorable to an alternative mode of payment and Kanton of Zug in Switzerland was their answer. For non-profit foundations the Kanton of Zug had a generous legal model. For companies’ wanting to implement ICOs with legal security this model became the core of a flourishing crypto landscape.
Zug was the first municipality to pay taxes in cryptocurrencies. As ICOs receive their funds in bitcoin and ether, at times it becomes difficult for the companies to exchange their crypto into fiat, this is an advantage.
After Tezos, many companies were attracted to this place.
A Swiss foundation was set up to support Tezos. Tezos foundation was to be responsible for setting budgets and disbursement of the funds from the money collected. Monetary values as donations were accepted by the foundation and tokens were returned as gifts by the foundation.
Johann Gevers was made the President of the Foundation. So that the foundation’s non-profit character was maintained Kathleen and her husband had no direct influence on the foundation, thus giving Johann the sole right to sign documents.
9.The mother of all ICOs
Johann Gever was living in Switzerland and he suggested the idea of financing Tezo through ICO (Initial Coin Offering). Kathleen considered herself lucky even if their enterprise ropes in $20 million and they left an impact. But, Tezos was able to break all records and went on to be the largest ICO to date.
Tezo’s ICO collected $232 million worth
By the time the Breitmans’ ICO closed two weeks later, the Swiss foundation they had set up to receive the funds had taken in $232 million worth of bitcoin and ether—more than any other ICO to date. In exchange, contributors—whose legal status was essentially that of donors to a nonprofit—were to receive a brand-new cryptocurrency tied to a brand-new blockchain, one that was already being talked about as a possible Ethereum killer.
With time Kathleen and her husband’s relation with the Tezos Foundation’s president Johann started to get strained. Johann had control over the foundation’s appreciating assets and he refused to disburse funds to developers. He accused the Breitmans of trying to influence the foundation’s affairs and refused to resign.
Whenever the Breitman needed Johann he was never available and was supposedly en route to or back from a blockchain conference. Arthur thought that he was busy with Monetas (Johann’scompany) but he got to know from an employee working there that Johann was never in office. This seemed to raise more doubts in the Breitman’s mind.
A new currency Tez’s issuance was set in motion on 1st July 2017. 5000 Tez was available at an initial price offering a special discount to early participants at one bitcoin or 50 cent per Tez. On 13th July, two weeks after the opening more than 607 million tezzies had been reserved.
Tezos Foundation collected $232 million with a promise to give Tez which did not exist yet. The intellectual property of the project, the Tezos source code was held by the Breitmans through their company Dynamic Ledger Solutions (DLS) which is now the foundation. A contract obligated the foundation of delivery of a functional platform.
As per the contract in less than nine months the foundation was to acquire the original source code and the Tezos trademark from DLS for 8.5 per cent of the ICO funds raised and 10 percent of all token issued on the genesis block.
A few days after the ICO was closed Johann messaged that they should hire a new person to manage the Tezos Foundation. There was a problem in the internal level and the work on the protocol began to slow down. With so much going on the promise of delivery of Tez was not fulfilled, leading it to be called a scandal and it was even named by some as the Grevers crisis.
The press got a hint of the infighting when the Breitman’s tried to remove Johann in October 2017. Reuters published some articles stating that the project was a disaster which led to lawsuits being filed by frustrated token buyers.
The first lawsuit against Tezos was filed in the United States with the allegation of sale of unregistered securities and securities fraud.
As promise to issue tokens to the investors was broken it led to four more lawsuits being filed in Florida and California. KYC concerns and an internal power struggle led to even more bad publicity.
Amidst all this, the Breitman’s set up a second foundation and financed the projects development from their own savings.
13.Back on track
Tezos finally have a working network. The investors got their tokens, the beta period went smoothly. Johann finally left the company after receiving more than $400,000 in severance. Many of Tezos community members are talking good about the network. Coins in the hardware wallet are supported by Ledger now. Tezos Foundation has committed to dispense $30 million of grants. Kathleen hard work finally paid off.
14.Kathleen wants to try her hands at video games
In an interview Kathleen said that she wanted to focus on online video games as the users of online games had the right profile and were willing to adopt new digital paradigms. A separate company would be formed for it and she would focus on building applications that are easy to use for the general public.
She believed that video games were vital as a gateway to their blockchain as they would offer the push or passage which is needed to get more people to start using cryptocurrencies.
15.Kathleen commits to donating a share of her proceeds.
Kathleen signed a binding commitment with Founders Pledge that she would donate a portion of her proceeds from ICO. At the moment she does not have any XTZ. Tezos raised $232 million in ICO and she wants to donate 15 per cent of her share. Tezos Foundation is committed to acquire Dynamic Ledger Solutions which is Kathleen’s company. The foundation would pay the full price only after four years. Founders pledge aim is to get many entrepreneurs to commit a part of their potential exit winnings to charitable purpose.