The new virtual currency concept, Bitcoin, has not been in existence for all that long, but it certainly has made an impact on early investors’ lives, good and bad. Despite scandals and financial crimes committed during its short lifespan, Bitcoin still has two true believers in the Winklevoss twins. Cameron and Tyler Winklevoss, are best known for their role in the creation of Facebook, along with founder Mark Zuckerberg. After a scuffle in 2008 with Zuckerberg, they were given $65 million in Facebook stock.
Winklevoss Twins to launch a Bitcoin ETF
With a massive amount of cash in hand, the two entrepreneurs have bigger plans: a US regulated Bitcoin exchange. According to reports, the Winklevoss Twins have hired the services of engineers, hedge funds, banks, and proceeded with talking to regulators to make what they see as the “Nasdaq of Bitcoin”. Additionally, they are in the process of getting approval from financial regulators to launch a Bitcoin ETF since 2013.
There are some big risks here for sure; the first and largest Bitcoin exchange, Mt. Gox which was located in Japan, suddenly went bankrupt after hundreds of millions of dollars were lost in Bitcoins after a security breach. In late 2013, another security breach hit Bitstamp, another exchange based in Europe, which was the nail in the coffin for Bitcoin’s massive rally at the time. The Winklevoss twins also have had to deal with uncertainty after a Bitcoin company they invested in was under scrutiny and the CEO was eventually arrested on money laundering charges in 2014. The CEO committed the crimes prior to the Winklevoss’s investment.
Bitcoin climbed to an all time high in late 2013 to $1200, but has since established a big downtrend to its current price of around $233.7 after a lack of faith in the currency due to all the scandals and bankruptcies associated with the virtual currency. However, this has not changed Cameron and Tyler’s mind that Bitcoin will certainly play a major role in the future and they have decided to assemble their own “dream team” to help create a reputable exchange that is regulated in the US, in order to help restore faith in Bitcoin.
Their corporate entity, Winklevoss Capital, has been establishing offices and their workspace in the area of Madison Square Park, located in New York City. The Twins, along with their staffers and executives have already established and tested their exchange model, trade engine and enhanced security programs. Everything is established, working and ready to go, all that awaits is the approval from the New York Department of Financial Services’ top regulator, Benjamin M. Lawsky. The regulator says he hopes to begin approving Bitcoin companies early this year after establishing a set of standards, but until then, the Winklevoss twins wait patiently for their chance to change Bitcoin forever by bringing back confidence and American buyers to the Bitcoin marketplace.
Disclosure: No positions