Puzzling investment: have they bought a share in Block.one or just EOS tokens?

Puzzling investment: have they bought a share in Block.one or just EOS tokens?

Block.one has announced that it got investments from the new key investors, Bitmain and Peter Thiel

The details of the investment are yet to be disclosed, and it's unclear whether these investors got a share of the Block.one company or just the tokens of EOS. Jihan Wu, Bitmain CEO, called EOSIO 'a great example of blockchain innovation' in the announcement.

A very puzzling investment and we will look at both options.

In case of acquiring a share in the company, the interest of Bitmain and Peter Thiel is obvious. Buying a part of a company that has a few billion to spend on its growth is interesting. Maybe Block.one has more tricks up its sleeve to show us, maybe a secret project, or some really killer features for EOS blockchain. Bitmain probably has excessive amounts of cash to spend and a strong desire to expand to new areas.

Peter Thiel, being a successful investor, also has the interest to invest in big blockchain company, and most of the big blockchains are developed by their communities, not by centralized companies. Block.one likes money, it’s one of the few centralized developers, so it would be totally reasonable to buy a share of it for someone like Peter Thiel. But the interest of Block.one is unclear.

Do they really need more money? Usually, a fundraising in exchange for a company share is necessary when you don’t have a capital to test new theories or hire the necessary team, but Block.one has the capital to do wherever they like for years. So maybe this guess is wrong.

Another option is buying EOS tokens from Block.one. It’s highly probable that Block.one has too many tokens and wants to cash out of them. Selling them in small portions to various investors is a good idea, as the company has distanced itself from EOS blockchain and has no intention to influence it. For Bitmain and Peter Thiel it could be a good dividend token if they decide to become block producers. That is most likely, but as always, all we can do here is guess. Maybe we'll find out soon.

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.