EOS key backer and developer— Block.one is planning to re-acquire 10% of its stocks in the cryptocurrency project through a private buyback. As a result of this, early investors in the project are likely to record a gain of up to 6,567% on their initial investments.
Reportedly, the company now has a value of around $2.3 billion. For a company whose valuation was $40 million in the 2017 seed round, this is a major feat.
Furthermore, a buyback price of $1,500 per share is offered by the Block.One. This is an increase of about 6,567% compared to its original price of $22.50.
This return on invest despite the year-long bear market is a clear indication that early investors in successful projects are in for a big payday.
Does Who Will Benefit From the Block.One Buy Back
Reportedly, Billionaire PayPal co-founder Peter Thiel, as well as crypto mining hardware billionaire Jihan Wu of Bitmain, will make the most from the buyback. In addition, other notable investors such as Louis Bacon, and Alan Howard will also cash out big.
Jihan Wu of Bitmain made a comment regarding his investment in the company last year. He says;
“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,”
Importantly, how much each of these investors will make from this buyback is not yet known.
So far, the only early investors to accept the buyback offer is crypto merchant bank— Galaxy Digital Holdings LP.
According to an official press statement from the bank, a gain of about $71.2million was made. The release states;
“On May 20, 2019, the transaction closed and the Partnership received $71.2 million for the tendered shares, representing a majority of the Company’s position and a 123% return on the realized investment.
Going by this, once other investors in the project decide to accept the buyback offer, their gain will be known.
Block.One Releases a New Web-based Graphical User Interface
Recently, Block.one announced the release of a new web-based graphical user interface— EOSIO Explorer. The EOSIO Explorer make interacting and monitoring EOSIO-based applications and networks in development easier.
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Joshua Tayo is a Nigerian Freelance writer, who loves to write about anything related to technology. His interest in Cryptocurrency started in 2015, and it has not stopped since.