Even Bitcoin Maximalists are Investing in Ethereum Tokens
In the eyes of Bitcoin maximalists, every cryptocurrency that isn’t Bitcoin is a shitcoin. So it may surprise you to know that some prominent Bitcoin maximalists are throwing their money behind a new Ethereum project.
INX is a new all-in-one cryptocurrency exchange project which plans to raise $130 million via an SEC approved IPO.
One of its investors, and a member of its advisory board, is Samson Mow – the CSO of Blockstream. Blockstream is a private company, backed by AXA Strategic Ventures, which is heavily involved in the development and direction of Bitcoin.
Samson Mow’s investment in the project is doubly surprising given he was dismissing Ethereum out of hand as recently as January. The CSO described Ethereum as “the most impractical thing in existence”, and unfollowed whoever dared speak its name.
The INX IPO filing to the SEC lists other notable investors in the form of Litecoin (LTC) creator Charlie Lee. Mow and Lee are also joined by lead Monero developer Riccardo Spagni.
Samson Mow’s $100,000 investment and his role as an advisory board member grants him the perk of being able to buy 100,000 INX tokens for a locked-in price of just $0.01.
The idea of engaging in tribal behaviours when it comes to digital currencies is ridiculous, but that hasn’t stopped tribes from emerging. Mow engaged in such behaviour himself, as evidenced by the above tweet.
However, ETH fans should take some amusement from the fact that a man who deemed the Ethereum tech impractical was willing to take a $100,000 punt on a project that uses it as its foundations.
The irony wasn’t lost on Ethereum developer Anthony Sassano, who responded to the news with exasperation:
“It’s utterly amazing to me that people who have been shitting on Ethereum for years (and calling it a scam) are now investing/advising a company that is issuing an ERC20 token. I’m at a loss for words at this point – just absolute insanity.”
A Crypto IPO?
INX will be the first blockchain-based IPO to launch under the official provisions of the SEC, and with its blessing. The INX tokens do qualify as security offerings, and will be a first of its kind in the United States.
Argo Mining raised a regulator-approved $32.5 million in 2018, and now trades on the London Stock Exchange (LSE) in the UK. Like Argo, would-be investors will have to utilize their stock-broker if they want to gain access to the INX tokens when the sale gets under way.
The filing states INX will bring a range of typical financial and trading services, such as ”customary trading, clearing, and settlement procedures, regulatory compliance, capital and liquidity reserves and operational transparency.” The document also describes intentions to launch derivatives trading at a later date.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.