Bitmain’s Jihan Wu & PayPal’s Peter Thiel Invest into EOS Developer Block.one
EOS Developer Block.one Receives Investments from Peter Thiel, Jihan Wu
EOS developer Block.one has secured investments from PayPal’s Peter Thiel and Bitmain’s Jihan Wu, according to an official announcement from the company earlier today.
— EOS (@EOS_io) July 16, 2018
Block.one is the publisher of the EOSIO blockchain protocol, which aims to be a high-performance blockchain for decentralized applications.
Peter Thiel is the billionaire co-founder of PayPal. He launched PayPal in 1998 and served as CEO, later taking the company public in 2002. Thiel is also known as one of the first outside investors in Facebook and he continues to sit on the board of directors for the world’s largest social media network.
In the last few years, Thiel has become an evangelist for the cryptocurrency community while actively investing in a number of crypto and blockchain startups. Other notable early-stage investments from Thiel have included Airbnb, LinkedIn, and Yelp.
EOS received investments from a number of other notable names during this latest funding round, including Bitmain, Louis Bacon, and Alan Howard. This funding round follows an earlier round led by Christian Angermayer, Lansdowne Investment Company Ltd., and Galaxy Digital’s Mike Novogratz.
The news comes just days after Block.one announced that the former CFO of the Commonwealth Bank of Australia, Rob Jesudason, had been appointed as the company’s Group President.
The Block.one blog post announcing the funding round did not disclose how much Thiel or Bitmain had invested in the company. However, CNBC has previously reported that Thiel has invested $20 million into bitcoin (BTC) through his venture capital firm Founders Fund.
The last major public investment made by Thiel was in a US-based stablecoin project called Reserve.
Jihan Wu, meanwhile, has made billions through his cryptocurrency mining hardware company Bitmain. Bitmain is a China-headquartered crypto mining hardware giant that currently occupies approximately 75% of the BTC mining chip market. Wu co-founded Bitmain with Micree Zhan, and the pair’s holdings are reported to be approximately $5.3 billion, according to Bloomberg.
Jihan Wu made a statement about his investment in EOS, praising the direction of the platform and its future potential:
“The EOSIO protocol is a great example of blockchain innovation. Its performance and scalability can meet the needs of demanding consumer applications and will pave the way for mainstream blockchain adoption.”
This latest investment information is good news for a cryptocurrency that has experienced some speed bumps in the first few weeks of launch. Following the mainnet launch in June 2018, EOS has experienced problems like unauthorized account freezings, arbitration issues, RAM speculation, and technical issues. Some call these issues natural growing pains that need to be worked out in any cryptocurrency project, while others believe there are more serious issues. This latest investing round led by big tech names, however, is nothing but good news.
EOS, meanwhile, continues to be ranked in fifth place in the world with a market capitalization of $7.1 billion. The coin is up 10% on the day, trading at around $8 USD apiece.
The news has sent twitter into a frenzy with some claiming this will push EOS price higher while others say this doesn't necessarily mean EOS will be a success:
After the Peter Thiel investment, I think I'm going to buy out the entire inventory pic.twitter.com/Bz2wMCE1mF
— Charles Hoskinson (@IOHK_Charles) July 16, 2018
Block one investment doesn’t mean EOS is a success.
— Umed Saidov, CFA (@RealSaidov) July 16, 2018
Ultimately, everyone wants to serve their self-interest and make money.
— Pomp 🌪 (@APompliano) July 16, 2018
#EOS just raised 4 billions, what do they need more money for 😂😂😂 what problem are they aiming to solve? Do they want to feed the world?
— Flo (@studentofcycles) July 16, 2018
When Ethereum's founding investor, and bestower of the Theil prize, invests in EOS and $4b holders of Ethereum exchange their ETH for EOS, its time to accept EOS is now the crypto leader@ricburton @cryptomanran @VitalikButerin @bytemaster7@adam3ushttps://t.co/lN5qAfPMdP
— John Underwood (@underwun) July 16, 2018
— WhalePanda (@WhalePanda) July 16, 2018
The tricky thing about this announcement is the amount of capital https://t.co/vsWGMBLycl already has on its balance sheet.
They could have sold strategic interest in the round to Thiel / Bitmain below the cash value on the B/S, and we would have no way of knowing. https://t.co/LaW3jRqc4C
— Ryan [Giving Away ETH for Solidity Devs] Selkis (@twobitidiot) July 16, 2018
— Omar Bham (Crypt0) (@crypt0snews) July 16, 2018