CoinList Launching Crypto Exchange After Jack Dorsey Investment. He Trashed Facebook’s Libra

Written by Dana Sanchez
Jack Dorsey, a bitcoin fan, participated in a $10-million funding round for CoinList, a token sales-management platform. CoinList plans to launch an exchange. Dorsey met with French President Emmanuel Macron in Paris, June 7, 2019. (AP Photo/Francois Mori, File)

Jack Dorsey, a bitcoin fan, participated in a $10-million funding round for CoinList, a token sales-management platform. CoinList plans to launch an exchange. (AP Photo/Francois Mori, File)

This is Dorsey’s first investment in the 2- year-old CoinList startup. The round was led by cryptocurrency hedge fund Polychain Capital.

CoinList is a platform for other startups to raise capital on token sales, airdrops and hackathons. It will now seek to launch an exchange and wallet, Coin Telegraph reported.

“Crypto needs a trustworthy platform for launching new projects. CoinList leads the industry in that role, and trading is a logical next step,” Dorsey said, according to the Wall Street Journal. 

Dorsey has made a long-term commitment to Bitcoin, showing support on Twitter and his mobile payments company Square. Launched in 2010, Square is a small, square-shaped device that attaches to Apple and Android devices via a headphone jack and allows people to swipe their credit cards.

In 2018, Dorsey allowed Bitcoin to be traded on Square’s Cash app. In March, he launched Square Crypto, a branch dedicated to growing decentralized networks through the use of development, design, and marketing.

Dorsey said that the work Square Crypto does will remain “open and free” to ensure a “more accessible global financial system for the internet”. In the past, Dorsey has said before that he hopes Bitcoin will emerge as the internet’s native currency.

Last week, Square announced it was moving into incremental stocks sales, Coin Telegraph reported. Dorsey tweeted that cryptocurrency purchases were a suitable alternative for people who aren’t interested in owning equity. 

Dorsey has some thoughts on Facebook’s Libra. “Namely, it’s bullshit,” Jack Morse wrote for Mashable.

At the Oct. 18 Twitter News Summit in New York City, Dorsey said Libra isn’t even a real cryptocurrency, implying that Libra’s association with cryptocurrency is a marketing stunt. 

“I don’t know if it’s a gimmick,” he told the crowd, “but cryptocurrency wasn’t necessary to make that thing work.”

Asked if Twitter would ever join Libra, Dorsey responded, “Hell no. Nothing within Libra had to be a cryptocurrency to do what they want to do. They use that label liberally. It’s completely incorrect.”

Riccardo Spagni, a cryptocurrency expert and lead maintainer of Monero, told Mashable via Twitter direct message that calling Libra a cryptocurrency is “intellectually dishonest and decentralization theatre, at best.”

“From a technical perspective there is little difference between Libra’s consensus mechanism deciding if your transaction is worthy of inclusion, and Visa alone deciding if your transaction should be processed,” Spagni said. “It’s central banking by another name, a permissioned central banking committee instead of a government-appointed one.”

On its website, CoinList claims to be a platform where the “best digital asset companies manage their token sales”. It says it has conducted more than 50 token sales with more than half a billion dollars raised, CCN reported.

Fundraising tools such as initial coin offerings that were popular when CoinList launched are no longer viable. This is a delicate time for the token industry, Cointelegraph reported. Regulatory controls around the world are tightening.

Listen to GHOGH with Jamarlin Martin | Episode 68: Jamarlin Martin

Jamarlin talks about the recent backlash against Lebron James for not speaking up for Joshua Wong and the violent Hong Kong protestors.

In 2017, 966 ICOs raised $10 billion, according to CoinTelegraph. Tokens purchased in ICOs returned an average of 12.8x the initial investment in dollar terms, Investopedia reported.

In 2018, 2,284 ICOs raised $11.4 billion, but activity had fallen off a cliff by November.

Of all the ICOs, 84.29 percent of the projects issued their tokens on Ethereum.