- Greg Kidd, an early investor in Coinbase and Twitter, just invested $57.5 million toward Uphold, a currency exchange that also trades in cryptocurrencies.
- Uphold will use part of the money as insurance for its users to guarantee that their deposits to the exchange are protected in the event of a hacking incident.
- Uphold will also use the funds to add integrations with Ripple and begin trading in its cryptocurrency XRP, which is up almost 4000% since it started trading in April.
Greg Kidd has had big success with his early investment in Coinbase, the cryptocurrency exchange now valued at $1.6 billion. Before that, he was an early investor in Twitter and Square, before their respective IPOs.
Now Kidd, a federal regulator turned entrepreneur, has invested $57.5 million into Uphold, a four-year-old currency exchange where traders can convert USD into traditional currency like euros as easily as they can cryptocurrencies like the red-hot bitcoin. The investment was made through his firm, Hard Yaka.
A big part of where that funding will go: Adding support to Uphold for trading in XRP, the red-hot cryptocurrency from startup Ripple, making it one of the few mainstream currency exchanges to do so.
In a bigger-picture sense, Kidd’s backing is all in the name of making Uphold more secure than smaller crypto-exchanges, while simultaneously positioning it as more innovative and experimental than the $1.6 billion leader of the pack Coinbase, which has been cautious about adding new cryptocurrencies to its exchange.
The biggest part of Kidd’s investment is an insurance fund for Uphold’s users, which will be used to compensate users in the event of a successful cyberattack on the company. Hack attacks on cryptocurrency companies has become increasingly commonplace, as many of these exchanges sit on millions Read More Here