For the first time, a big sized organization of a blockchain platform will come under one of the big four accounting firms’ audit. The Tezos Foundation disclosed that PricewaterhouseCoopers of Switzerland is being roped in to conduct an external audit. This will mean that the finance and operations of the new age technology firm will come under the scanner of an international giant. Interestingly, the entry of it assumed significance since it will provide opportunities for both of them in equal terms.
In any case, there is one thing clear, i.e., the blockchain project firm badly needed some external help to remove any misgivings about its project or the funds it raised. The company described itself as a “self-amending” blockchain and was engaged in raising as much as $232 million through an ICO in July last year, cointelegraph reported. At that point in time, it was the biggest amount to have raised through ICO. This was at a time when the overall cryptocurrency market was steadily moving upwards.
However, the project became a center of attention for many after the ICO. One of the main reasons for it was the filing of a number of lawsuits against Tezos. This was on the back of delays in launching the project, and it had finally seen the light of the day when a beta network was introduced on June 30 this year. There have been significant changes in the cryptocurrency market during the period July 2017 and now making everyone to be nervous.
The announcement of one of the top accounting firms for an external audit is meant to demonstrate few things to the general investors or those who filed lawsuits. One among them is that the project could claim itself to be fully committed towards the highest degree of integrity as its operations would be checked by the accounting firm. The foundation thinks that hiring the PwC enables its community to not only repose faith in the use of finances but also operations.
As far as PwC is concerned, the accounting firm indicated in March about its intention to introduce an auditing service specifically for blockchain platform. This included businesses engaged in the digital currency sector. The United Kingdom-headquartered firm claimed that a number of enterprises have already signed for its service even before the official release.
Acquisition of Startup
Those efforts were followed by an acquisition of a minority stake in VeChain, a China-based blockchain startup firm, in May. The company is engaged in offering specialized services on the Internet of Things (IoT), supply chain management, and anti-counterfeiting. A few days back, Ernst & Young also disclosed about the acquisition of a startup firm that is engaged in cryptocurrency technology.
Significantly, there was another controversial project involving Tether. The relationship with Friedman, LLP, an auditing firm, was dissolved in January this year. This raised speculations whether the company had enough American dollars to support its token at 1:1 ratio. In any case, the current move could be viewed as a positive one to remove any misgivings or come out with facts.