Not high on bitcoin, but Mark Cuban to invest in cryptocurrency fund
'Shark Tank' star had said bitcoin was in a bubble
Mark Cuban wants in on the cryptocurrency boom even if it turns out he’s right that bitcoin is in a bubble.
“I have always looked at blockchain as a foundation platform from which great applications can be built,” Cuban said in an Aug. 19 email response to questions. “Hopefully we can find a few.”
Runa Capital principal Nick Tomaino was an early employee at digital currency exchange Coinbase Inc. and runs the cryptocurrency-focused blog the Control. They plan to differentiate 1confirmation from the slew of digital currency hedge funds that have sprung up recently by taking a page from the venture-capital play book.
Rather than investing in digital tokens through initial coin offerings or in the secondary market, 1confirmation plans to invest from $100,000 to $500,000 in early stage companies before their ICO, and help those companies develop their product. Once the start-up is ready to issue an ICO — an initial coin offering — the fund hopes to negotiate a discounted price.
Cuban, who is a majority owner of the Dallas Mavericks basketball team and star of start-up investing theme show “Shark Tank,” tweeted in June that bitcoin was in a bubble, causing the cryptocurrency to drop in price. Cuban says that’s beside the point given the developing underlying technology.