Jack Dorsey, CEO of Twitter and ardent Bitcoin proponent, seems to be taking a more active role in the cryptospace after it was revealed that Dorsey has made a significant investment in an emerging crypto start-up.
According to a report by the Wall Street Journal, Dorsey is one of many investors for CoinList Inc., with the company having raised over $10 million in its latest round of funding. The CEO of Twitter said,
“Crypto needs a trustworthy platform for launching new projects. CoinList leads the industry in that role, and trading is a logical next step.”
The fundraising round was led by San Franciso-based Polychain Capital, a firm that reportedly managed over a billion-dollar crypto hedge fund in 2018.
CoinList came into the limelight during the 2017 crypto bull-run, when various crypto-startups were raising money at an exponential rate due to Bitcoin’s massive pump. The present fundraising round comes at a time when regulations around crypto-based companies are becoming stricter and airtight, with previous fundraising tools such as ICOs no longer available.
However, the organization has managed to receive prominent backing from various investors, and the involvement of Jack Dorsey, CEO of Square Inc., suggests that the project has sufficient legs to carry on substantial developments. According to CoinList, it has been able to sustain itself in light of new market regulations, having supported token offerings worth over $800 million since 2017.
Organizations linked with Dorsey have been in the headlines for a while now after Square Crypto recently announced that the platform was introducing traditional stocks on the Square App. Dorsey had also claimed that virtual assets could be used in order to gain equity of these traditional assets.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”