Jack Dorsey, the CEO of Twitter, has made a direct investment in a fledgling cryptocurrency company as part of its latest funding round.
On October 30, it has been reported by Wall Street Journal that Dorsey, who has become increasingly well known for his support of Bitcoin (BTC), injected an undisclosed amount in CoinList, a token sales startup.
CoinList serves as a platform for other startups to raise capital through tools such as token sales, Airdrops, and Hackathons.
Likewise, the company raised a total of $10 million in the latest round, having operated on the market since 2017. Now, it will seek to enter the exchange sector, along with launching a wallet.
The Wall Street Journal quoted Dorsey as saying:
“Crypto needs a trustworthy platform for launching new projects. CoinList leads the industry in that role, and trading is a logical next step.”
However, the move comes at a delicate time for the token industry. As it has been reported by Cointelegraph, tightening regulatory controls worldwide have resulted in fundraising tools that were popular at the time of CoinList’s genesis being no longer viable. Among them are initial coin offerings, or ICOs, which have all but disappeared since last year.
Last week, Square announced that it was moving into incremental stock sales. However, Dorsey was tweeting that cryptocurrency purchases were a suitable alternative for those who were not interested in owning equity.
Thus, he also added that he himself was not interested in participating in Facebook’s digital currency, Libra.