Billionaire Thiel Unveils Broker-Dealer Venture For Major Crypto Traders

Billionaire Peter Thiel’s venture-capital firm is investing a startup designed to optimize block trading for major cryptocurrency market participants.

The Wall Street Journal reports that Founders Fund is among the investors in the early-stage startup, called Tagomi Systems Inc., people familiar with the situation said.

Thiel's investment comes after it was revealed that Founders Fund itself has already made a "monster bet" on bitcoin.

It also confirms Thiel's bullish view on bitcoin reported in October last year when the billionaire investor argued that critics of bitcoin were "underestimating" the cryptocurrency.

“If bitcoin ends up being the cyber equivalent of gold and it has a great potential left and it’s a very different kind of thing from what people in Silicon Valley focus on—companies, not algorithms not protocols, but this might be maybe one exception that is very underestimated,” the Silicon Valley elite said.

And, in March, he said there will ultimately be only one digital equivalent to gold, and bitcoin, as the "biggest" cryptocurrency, will triumph.

The question with something like bitcoin is whether it can become a store of value. And the thing it would replace is something like gold. The analogy is it's like bars of gold in a vault that never move and you get it and it's a hedge of sorts against the whole world falling apart."

"The objections that people have to bitcoin are also objections to gold. It's this weird currency that's not backed by any government. Same thing is true of gold. It's not clear what the intrinsic value of bitcoin is. Same thing is true of gold. It may well be a bubble, but - and most bubbles are unstable and end - one of my friends has this line that 'money is the bubble that never pops', so if it is a bubble, then it is money."

"If everybody decided that a $100 bill was worthless then you wouldn't want to have a $100 bill."

According to The Wall Street Journal, the problem that the new startup aims to solve stems from a fragmented trading environment across global cryptocurrency exchanges, where, for instance, the price of bitcoin can vary between platforms. As such, the startup - co-founded by Greg Tusar, the former chief of electronic equities trading at Goldman Sachs - is building a platform that finds the best market to execute large numbers of cryptocurrency trading orders at a specific time.

Currently, buying or selling large quantities of digital currencies is tricky because the market is fragmented across more than 100 crypto exchanges around the world. Connecting to all of them requires setting up a separate account with each one, and crypto exchanges generally impose limits on daily flows in and out.

That makes it cumbersome and time-consuming to pull off a big trade, and the price of a digital currency can move dramatically before the investor finishes buying or selling.

Tagomi hopes to make it easier to make such bulk trades by borrowing a page from the stock market. In U.S. equities, broker-dealers use systems called smart order routers that dispatch their clients’ buy and sell orders to various venues, including a dozen exchanges and more than 30 off-exchange “dark pools.”

These routers make rapid-fire decisions about which market is the best place to execute a trade at any given time. Tagomi is looking to develop a similar tool for the crypto markets, according to people with knowledge of its plans.

It certainly seems clear that Thiel is making a bet (size of the bet has not been reported) that institutional interest is expected to increase dramatically in cryptocurrency trading.

Comments

Archive_file hedgeless_horseman Wed, 05/02/2018 - 20:23 Permalink

The whole problem trying to be solved on the new platform is the length a trade in BTC takes to execute. Easier solution?

DITCH BTC for one of the newer, instant cryptos. For example, NANO. It’s free and takes seconds to show up in your wallet. There are many similar coins that do the same thing. Why in God’s name are we still even talking about BTC?

In reply to by hedgeless_horseman

house biscuit swamp Wed, 05/02/2018 - 21:43 Permalink

BC's has the advantage of branding/familiarity & the advantage of a huge, widely distributed hashrate

Suggest 40% BC, 30% major altcoins, 30% minor altcoins

Nobody typing on the internet has a fucking clue where this will end up

Invest what you can afford to lose & spread it out as above

 

In reply to by swamp

Think for yourself Archive_file Wed, 05/02/2018 - 21:55 Permalink

Because it's the oldest blockchain around (including first and main one to notarize comments, contracts, most hashrate of the PoWs, most cryptographically secure so far, used by other blockchains to anchor and verify their own... Yeah even if btc never becomes a competitor to fast private currency coin (won't be nano, it sucks), it'll still have value in the blockverse.

In reply to by Archive_file

nmewn Wed, 05/02/2018 - 19:21 Permalink

Satoshi Thiel...lol.

So anyways, I stumbled across this from CNN...CNN of all places!...which is kind of shocking...

"A former campaign communications adviser to Donald Trump blew up at Democratic U.S. Senate aides on Tuesday at the end of a behind-the-scenes grilling connected to their wide-ranging Russia investigation.

New York-based political consultant Michael Caputo said he has spent $125,000 on attorneys to help him navigate the committee's demands for documents and testimony, ruining his children's economic future and forcing him to sell his family home.

Calling the probe a 'witch hunt,' Caputo demanded to know who is funding a secretive effort to continue digging into unsubstantiated allegations that Trump has ties with the Kremlin.

'What America needs is an investigation of the investigators,' he said. 'I want to know: Who is paying for the spies’ work and coordinating this attack on President Donald Trump?'

'I want to know who cost us so much money, who crushed our kids, who forced us out of our home, all because you lost an election. I want to know because God Damn you to Hell.'

...oh, it wasn't CNN. It wasn't even in America's Alinsky Nuuuz.

I know thats gotta be shocking! Somehow ;-)

http://www.dailymail.co.uk/news/article-5682739/God-damn-hell-Former-Tr…

nekten Wed, 05/02/2018 - 19:22 Permalink

The ex-Goldman scares me a bit. Is it practical to wash-trade with daily volumes at, say $30B? How big would your order need to be to make the thing move?

Oops, make that $8B.

 

wtftech Wed, 05/02/2018 - 19:25 Permalink

everybody b shilling the fuck out of $HOT coin. after looking over the code, i see why, they are a sleeping giant about to take over and replace the blockchain. remember gnutella, meta currency projects? way before bitcoin there was... holochain

occupy wall street
https://vimeo.com/31164740

what is holo?

lead dev talks about why they dont crack the bits like the other three letter-ers
https://www.youtube.com/watch?v=hyCtYrHJebs

looks to be a working project, and not some shitcoin dreamland idea, instead you have working helloworld code on a new type of internet, void of gov, spies, banks, corporates, monopolies, crown, fuck heads...

why are majority of shitcoins place disclaimers about coins not redeemable and are not worth anything when traded, and have no value or affiliation with project. you look at holo coin and it says you own a real currency, worth money, that grows when the network does. a complete opposite of dreamland la la projects in the top ten on marketcap. buy something real that will end the bank cartel slave owners and free mankind for our generation. its $HOT

MsCreant Wed, 05/02/2018 - 19:32 Permalink

It's bits of code. It is a non-thing being traded on an exchange-- a Potemkin Potemkin, fiat-fiat. 

The emperor has no clothes and everyone is knows it but is going to "trade it" anyway because no one plans to tell him for a while. 

Holy shit you people are insane. 

 

wtftech MsCreant Wed, 05/02/2018 - 19:37 Permalink

actually its cracked bits,
ie password hashes that are bought by agencies to decode data on computers. instead of them doing all the work, the interconnected computers online do it for them for free.

so there is some value, its whatever those agencies feel is needed to complete the task, and they get the money from you to buy the numbers.

In reply to by MsCreant

wtftech Wed, 05/02/2018 - 19:44 Permalink

remember, 'they' are trying sidetrack/divert it into a currency identification chip system on many continents(different projects), its up to you whether you support it or not.

isnt theil a sitting builderberger?

swampmanlives Wed, 05/02/2018 - 21:18 Permalink

These rich doods are gonna buy all this shit up, then convince us to buy it from them at even higher prices. Or they'll just own our asses after we realize we'll have to suck their hairy dicks to get a piece of the crypto pie when they control the majority of it. Why do you think Soros is getting in on this shit now?

Sun Rabbit Fri, 05/04/2018 - 07:45 Permalink

Thiel isn't gonna use BTC as a store of value. He's using it as a medium of speculation. If you own BTC now, keep it. Don't buy or sell. In terms of fungible assets I think Russian Rubles are pretty good. Set up an account 2 years ago that's already made me 12% despite the higher transaction costs. So whatever Euros I got layin around in various accounts I sweep in there once a month.