Why Billionaire Mark Cuban Sees Massive Potential for Cryptocurrencies

One of the savviest businessmen in the world, Mark Cuban, told Bloomberg this morning that he was investing in Twitter Inc. [NYSE:TWTR].

Considering his interest, you’d think Twitter was up there with Facebook, Inc. [NASDAQ:FB] and Amazon.com, Inc. [NASDAQ:AMZN] as an investor darling. But investors aren’t as enthusiastic about Twitter as other tech giants.

Make no mistake; Twitter has potential. Anybody who’s anybody speaks their mind on Twitter. It’s the US president’s favourite form of communication. I’ve even known interest rate traders who are glued to Twitter, looking for tweets from central bankers.

But how does Twitter unlock that potential? How can they monetarise their massive network? We’re not sure. But Cuban clearly believes that Twitter is capable of capitalising on its popularity.

Cryptocurrency Space

Cuban also confirmed that one of the companies he invests in is planning to undertake an initial coin offering in the cryptocurrency space. As reported by Bloomberg:

One of the companies Cuban is invested in, Unikrn, is planning its own offering, and digital currency news site CoinDesk said Thursday that the billionaire entrepreneur intends to participate.

‘…Unikrn is an esports online betting site that uses a virtual currency and is scheduled to launch in September a sale of tokens based on ethereum, a rival of bitcoin.

Rahul Sood, co-founder and CEO of Unikrn, said in response to a CNBC inquiry that the token sale is not intended to supplement venture capitalist funding.

Cuban has also invested in 1confirmation, a fund that plans to raise $20 million to invest in blockchain-based companies.

According to Bloomberg:

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, the fund hopes to negotiate a discounted price.

It’s a more cautious approach to the frenzy that has consumed the space this year, with start-ups raising hundreds of millions of dollars in days, or even minutes, with little real business applications besides a white paper and a website. Start-ups had raised $1.8 billion in ICOs as of last week, according to Coindesk.

Eventually, we expect the crazy momentum in the crypto space to settle. But, in the long term, there’s no denying cryptocurrencies and the blockchain have massive potential to change global commerce. If you want to get in before the ship takes off, and potentially make outsized gains, start by learning how to buy and sell bitcoin here.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

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