Is James Altucher Backing a Coinbase Rival?
James Altucher, a man termed the “face of the Bitcoin bubble” is a seed round investor for a newsletter and exchange service called Bitzumi, Inc. according to SEC documents released on Thursday, January, 4th. The filing reveals that Bitzumi has created a preliminary offering of 4,000,000 shares of common stock at a per unit price of $2.50 each.
The company plans to raise a maximum of $10 million with a minimum of $1 million. The funds may be used to compete with the current industry leaders and expand the business into other markets such as publishing. The document states:
Bitzumi Publishing’s goal is to dominate search engine traffic in the cryptocurrency industry and drive traffic to both our Bitzumi exchange and other product offerings, such as subscription-based newsletters.”
Despite being named as a co-founder of Bitzumi, James Altucher denies such a role and instead prefers to identify himself as an investor in the company.
A Competitor With Coinbase?
Bitzumi’s business model puts it into direct competition with Coinbase and several other major cryptocurrency exchanges. Coinbase is currently the largest digital asset exchange in the U.S, but dissatisfaction over customer service and the limited number of available assets may create an opportunity for new players to steal market share. Bitzumi’s heavy focus on marketing and media may give the company an edge in attracting new users to its platform.
Bitzumi hopes to make its common stock available for trading on the NASDAQ Capital Market if it makes enough money in its upcoming capital raise. However, there are no guarantees, and shares may instead be listed on the, often illiquid, over-the-counter markets.