Cryptocurrency enthusiasts should be familiar with Tim Draper. He is best known for being an aggressive Bitcoin investor who scooped up coins from the Silk Road auctions. In recent months, Draper started tying his name to various cryptocurrency ICO projects. Both Bancor and Tezos have proven to be wildly successful projects. His new ICO investment pertains to a project known as Credo.
Tim Draper is not Done With ICOs yet
A cryptocurrency ICO gains a lot more notoriety when a big name supports the project openly. Both Tezos and Bancor -two recent cryptocurrency ICO projects- saw their fair share of success, mainly thanks to the nod of approval from Tim Draper. It is doubtful either project would have raised tens of millions of dollars without having such a well-known backer in their corner. Both projects still have a lot of work ahead, and they remain untested concepts.
The reason Tim Draper is investing in these Initial Coin Offerings because he wants to diversify his portfolio. Buying Bitcoin and Ethereum is a smart decision, but there are additional ways to make money using these currencies. Investing in cryptocurrency ICOs is one way to do this, even though there are significant risks associated with them. These projects can never guarantee they will effectively launch, let alone survive and turn a profit.
Despite the risks, Tim Draper is still investing in cryptocurrency ICOs if the team can successfully convince him of their goal. He is now investing in a project focusing on eliminating spam. As most people know by now, spam emails are the main source of malware and ransomware distribution these days. Nipping these attacks in the bud should create a safer environment for all of us. Credo aims to achieve this goal in the future, assuming they can raise enough money to roll out their project.
Draper purchased 10% of the available tokens well ahead of the public ICO. This is not uncommon. We see pre-ICO investments take place, as companies want to maximize the amount of money raised as early as possible. Having Tim Draper purchase 10% of all available Credo tokens should be seen as a major validation of the project itself. Following his Tezos and Bancor investment, Credo marks the third cryptocurrency ICO Tim Draper is officially endorsed. It is unclear how much money changed hands.
The primary use case of Credo tokens is to make it a payment method for sending emails to others. This will all revolve around the BitBounce email service, which is somewhat similar to what 21.co is trying to do with their direct message service. Users pay to send messages to industry leaders, and they can even include incentives to make sure the recipient responds. It is an interesting concept, although it is not necessarily something which warrants an ICO.
Even though the success of Credo has yet to be determined, knowing Tim Draper is involved will bring a lot of mainstream attention to this ICO. Considering how he is also an investor in the BitBounce company, which owns Credo, it makes a lot of sense for him to make a strategic investment in this ICO. BitBounce has over 7,750 active users right now and seemingly processes over 42,000 emails every single day. It is good to see a token is created for a service that actually exists and is used by thousands of people.