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Skeptic of Bitcoin, Mark Cuban Plans to Invest in Initial Coin Offering

Skeptic of Bitcoin, Mark Cuban Plans to Invest in Initial Coin Offering
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Mark Cuban, billionaire investor and owner of the Dallas Mavericks, voiced his opinion about Bitcoin recently and his doubts about its success. However, in a recent public statement, Cuban states he plans on participating in another initial coin offering (ICO) site hosted by a company he’s already invested in: Unikrn.

Unikrn, a rival of the virtual currency giant Bitcoin, is an esports betting site that uses virtual currency and plans to “launch a sale of tokens based on ethereum.” Mark Cuban tweeted that bitcoin was in a “bubble” and seemingly doubted the success of its future endeavors.

As defined by CNBC, an initial coin offering is “a fundraising process for blockchain-based projects that allows investors to own part of a project through a digital network token.” Start-up companies who participate in the blockchain world perceive initial coin offerings as the ideal way to gather funds from investors since it’s an easier process than venture capital funding, and they’ve also found it quicker to raise money. A prime example is a project named Bancor, which raised about $150 million in initial coin offerings within two hours.

Although he didn’t see Bitcoin’s vision, Cuban did express interest in blockchain technology behind digital currency. Some experts, however, question “investmenting” through initial coin offerings with William Mougayar as a leading candidate. Mougayar, who organized a Token Summit in NYC this past May, revealed his discomfort in these types of investments. He said, “Welcome to the junk tokens phase of ICOs. More $ raised doesn’t mean you can jump-start an ecosystem of developers or a user community.”

There will always be those who doubt the success of certain revolutionary companies, but we’ve seen the success of Bitcoin within the past year. With Mark Cuban in their corner, it will be quite interesting to see what Unikrn can create to rival its competitor.

Mohammad Sultani for TechFunnel.com


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Mohammad Ali Sultani
Mohammad Ali Sultani
Mohammad Sultani is currently an undergraduate at the University of San Diego pursuing a degree in Political Science and English. As an experienced writer for various technology, law, and political news outlets, he has shown great potential in his writings and hopes to continue developing his skills. With the goal of becoming an established lawyer and writer, Mohammad is determined to help those in need on both ends of the spectrum.

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