Billionaire Investor Tim Draper Shifting Financial Support to Altcoin ICO Instead of Bitcoin
In an unprecedented move, billionaire venture capitalist and Bitcoin supporter Tim Draper is planning to participate in an upcoming ICO for a new cryptocurrency known as Tezos.
Tim Draper Investment Validates ICO
Draper’s decision, as long as he follows through with his plans, will mark the first time an investor of his stature to publicly support an initial coin offering (ICO), which are controversial in traditional financial circles because of their unregulated nature.
Tim Draper made a name for himself as an early supporter of platforms such as Skype and the Chinese tech giant Baidu. Thus, his support of this particular ICO could provide some legitimacy to the relatively obscure world of cryptocurrency crowdfunding.
Draper says he wanted to lead by example, saying it was the best thing he could do in relation to his plans to participate in Tezos’ ICO.
In an interview with Reuters, he went on to say that he thinks some of the cryptos being introduced will actually improve the world in some way and that he wants them to be promoted.
“Over time, I actually feel that some of these tokens are going to improve the world, and I want to make sure those tokens get promoted as well. I think Tezos is one of those tokens.”
Furthermore, what’s even more interesting about his involvement is that most capital venture firms are contractually barred from getting involved in such high-risk investments like cryptocurrencies. However, according to Draper, the contract terms he has with his investors do not limit him in this fashion. Additionally, he also says that a big reason firms don’t get involved with ICOs is simply that most contracts were unable to foresee such an innovation.
Tezos and Its ICO
Tezos is a decentralized blockchain platform that leverages smart contracts to govern itself and automatically update in a self-organizing, emergent way. In fact, Tezos itself is Greek for “smart-contract.”
It originated as the brainchild of the husband-and-wife team of Kathleen and Arthur Breitman. According to the Reuters report, the duo has an extensive Wall Street background and a long history with hedge funds. They created the platform via their U.S.-based firm Dynamic Ledger Solutions Inc — a firm that Draper also plans on investing in.
Tezos’ biggest selling point is as a self-amending blockchain as most other blockchains update on a relatively centralized basis. Tezos’ claims to overcome this problem by making development participation more of an open process.
The platform’s ICO will launch May 22nd, 2017 at 6:00 AM UTC and take place over a period of approximately two weeks.
What do you think of Tim Draper participating in Tezos’ ICO? Let’s hear your thoughts.
Images Via Ars Technica and Tezos