Mark Cuban on Bitcoin & cryptocurrency
Shark Tank Tv star and billionaire entrepreneur Mark Cuban has been having different frames of mind on the topic of Bitcoin.
He calls it a bubble but he wants to invest in it, he sees the prices rising, he sees tell tale signs of what may constitute a bubble in his eyes but still wants to take part in the cryptoboom.
Mark Cuban’s advice to retail Investors
If you want to invest in Bitcoin, be prepared to lose all your money. If you are prepared to lose all your money, take 10% out of your savings and invest into Bitcoin. He calls those who choose to invest in bitcoin as “true adventurers” and interested in throwing “hail mary’s”.
You may benefit wildly, you may not. He thinks that the smarter play may be to simply place your savings into “the cheapest SPX mutual fund you can find” as told to Vanity Fair.
Mark Cuban’s Investment in the space
Cuban has invested in ICO’s like Unikrn a e-sports betting company.
He is planning on investing in a vehicle called 1confirmation, an investment vehicle that is planning on deploying later and is currently in a $20 million funding round. The focus of this company would be on blockchain based companies.
Cuban has said that he has always looked at the possibilities of blockchain and what can be achieved with this technology being an underlying foundation and platform for boosting the viability of great applications and building them in a better manner. He’s hoping that it would be possible to find these solutions and applications with all the money that has been invested in it.
One of the principals from Runa Capital (Nick Tomaino) was involved as an employee of the wildly popular Coinbase and as such is a thought leader in the industry, he currently writes on his blog (The Control) to inform people about his thoughts on developments in the space. The team is thinking that one of the key differences in their investment fund is that they are not going to be investing in companies when they go for their Initial Coin Offering. They are planning on playing the game a little differently. Their idea is back strong foundational companies with a good these before they go for their token generation events. This way they are not buying the tokens of the company before the ICO, they are purchasing a stake in the venture as per current legal structures which makes things more streamlined. They are seeking to do this and it somewhat of a contrarian move as many hedge funds are rising and taking stakes in companies via their tokens when they deploy them after their ICO’s.
1confirmation is planning on providing investments that range from $100,000 to about $500,000 and will be providing guidance and assistance throughout the development of the product and company. By doing this they have more control and are able to see progress per step.
When the companies are then ready to launch to the world via an ICO, the venture fund will be able to receive tokens at solid discount.
Clearly he sees opportunity in the crypto space but he’s approaching it with great caution.