Billionaire Mark Cuban Gives In To Bitcoin Craze, Invests in Crypto Fund
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The outspoken Dallas Mavericks owner is investing in 1confirmation, a crypto venture capital fund founded by Runa Capital’s Nick Tomaino, according to Forbes.
Aiming to raise $20 million to invest in blockchain-based companies, the fund plans to invest up to $500,000 in early stage companies before their initial coin offering (ICO). The fund will also assist in the development of their product in exchange for a potential discounted token price once the startup is ready to issue an ICO.
Early in June, Cuban took to Twitter to share his take on the rallying digital currency, when it was trading around $2,800. Since then bitcoin has rallied, hitting an all-time high above $4,000 in August.
“I think it’s in a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble,” he wrote to some 7 million followers, many of whom challenged him on his rhetoric.
I think it's in a bubble. I just don't know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble https://t.co/hTrV5DeWNd— Mark Cuban (@mcuban) June 6, 2017
One such follower was Tomaino, who directed Cuban to an article he had published online featuring the beneficial characteristics of bitcoin, to which Cuban responded “you missed the most important characteristic. Ubiquitous acceptance.”
You missed the most important characteristic. Ubiquitous acceptance.— Mark Cuban (@mcuban) June 7, 2017
More than two months later, it seems the former Coinbase product manager made an impact on Cuban, landing his investment.
“I think Nick is smart and understands the space,” Cuban told Forbes. “[1confirmation] was one of several unique investments that will provide me a chance to learn more.”
This is not Cuban’s first investment in the cryptocurrency space. Holding a stake in an online eSports betting site, Unikrn, he plans to invest in tokens sold by the site. He is also looking to invest in a third crypto-related project, telling CNBC on Tuesday that “It’s an interesting space that I [want] to get involved with and learn more.”