It has been a while since we last heard from Tim Draper. The billionaire Bitcoin enthusiast has kept himself out of the media for some time. It appears Draper is now investing in a new cryptocurrency, though. To be more specific, he will partake in an ICO of a coin no one has heard of so far. Now is a good time to look at what Tezos brings to the table.
It is good to hear Tim Draper still keeps an eye on cryptocurrency. However, no one expected he would invest in an upcoming ICO. Initial Coin Offerings have become all the rage in cryptocurrency as of late. Some people are concerned this is a major bubble that will cause significant financial losses, though. Moreover, new coins and tokens are created nearly every day, yet very few of them will have any value whatsoever.
Tim Draper Is Not Done With Crypto Yet
For some unknown reason, Tim Draper believes Tezos will be the coin to invest in. It will be his first ICO in history, which is quite interesting. Rather than investing more in Bitcoin, Draper feels this unknown token will bring some value to the world. Tezos is yet another blockchain platform that will launch in the near future. An interesting development, although not something that will necessarily be a profitable investment.
Venture capitalists have always been tight-lipped when it comes to cryptocurrency ICOs. A lot of people remain wary of this investment structure, and for good reason. A lot of these platforms have yet to show a single line of code when they raise money. Although there are people with good intentions out there, chances of buying a useless token are quite high. Moreover, with money pouring into ICOs right now, there is the risk of creating a bubble.
What is even more disconcerting is the Tezos ICO itself. There is no hard limit on the number of tokens issued during the ICO. Moreover, it is unclear how the tokens can be used right now. It is good to see Tim Draper pay attention to these products. However, this sounds like investing into a platform that will offer no ROI whatsoever. The crowdsale begins on May 22nd, yet a lot of questions remain unanswered.
About JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.