This is history in the making. A must read for bitcoin aficionados.
The bitcoin industry is set to get a major investor – billionaire venture capitalist Tim Draper, a bitcoin aficionado has disclosed that he will be buying “a new digital currency offered by a technology startup”.
An early supporter of the digital currency, Draper stated he will participate for the first time in what is called a “initial coin offering” (ICO) of Tezos on May 22.
Tezos is a new blockchain platform launched by a husband and wife team with have extensive Wall Street and in hedge fund backgrounds.
He will also invest in Dynamic Ledger Solutions Inc, but did not want to provide any details.
As an early backer of Skype, Draper has scored big and has become the 1st prominent venture capitalist to openly embrace an ICO.
This is a significant stamp of approval, despite investor concerns on regulatory oversight for ICOs.
“The best thing I can do is lead by example,” said Draper, on his plan to participate in Tezos’ token offering. “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.”
Traditional venture capital firms are typically fenced by investor agreements that bar them from parking cash into such high-risk assets. Draper however said, the terms of contract with his investors allows him to invest in any vehicle of his choosing.
“I think most investor contracts did not anticipate something like an ICO,” said Draper. “But we did anticipate that certain things are going to happen and finance is going to be transformed.”
Tezos shares the same properties of bitcoins and its various blockchain platforms, however, its design is such that it allows not only for a decentralised ledger but for automated upgrades too.
Automated upgrades by its very definition calls for a centralised solution. Blockchains platforms by their very definition are decentralised. Tezos touts itself as the first blockchain platform to bridge the two opposites.