Several wealthy entrepreneurs have started to divest from their traditional investment vehicles and shift their focus to Blockchain-based cryptocurrencies.
Among the billionaire investors are former hedge fund manager Michael Novogratz, Kik founder and chief executive officer (CEO) Ted Livingston, investment mogul Tim Draper, and serial entrepreneur Mark Cuban.
Cuban, Livingston, Draper
The different investments made by these businessmen shows the promise of digital currencies as a vehicle to diversify one’s assets, store value, and establish market-changing platforms.
Livingston has announced his plans to establish a development space dubbed the Kin Foundation, which will use an Ethereum-based token for the disbursement of value. Livingston claimed that he selected Ethereum to launch the token due to its broad market reach.
“We did look at quite a few Blockchains. At the end of the day, it seemed like Ethereum was the obvious choice. It has wide adoption, a great platform, and ERC20 tokens that create liquidity right away.”
Cryptocurrencies: billionaires new favorite?
Cuban, meanwhile, is planning to participate in the ERC20 token generation event for UnikoinGold. The move to stake his reputation by announcing his support to the event is a proof of the value and mainstream acknowledgment of the Ethereum token.
Draper, on the other hand, has acquired a 10% interest in the ERC20-compliant token called Credo, which was launched by a company of the same name. Credo was established with an aim to fight email spamming. Draper also supported the Ethereum-based Bancor project and Tezos platform’s token generation event.
Novogratz invested in Bitcoin and Ethereum when he saw the significant increase in the prices of the digital currencies. He, however, decided to sell some of the currencies before the decline of their prices. He said that about 10% of his net worth is still in digital currencies. Novogratz has also projected that the cryptocurrency market could hit a value of $5 trillion in the next five years.