Dubai-based entrepreneur Khurram Shroff has announced an investment of $10 million in the upcoming launch of a new version of Ethereum, the software platform used for its cryptocurrency.
As Bitcoin, the world’s best-known cryptocurrency, jumped above $17,000 to hit a three-year high on Wednesday, Shroff said he has bought a stake of around 20,000 Ether in the plan to launch Ethereum 2.0.
The investment is to be made in partnership with Canada-based CanETH, an institutional-grade staking service for holders of Ether, which facilitates users participating in Ethereum 2.0, he said.
Shroff, who is chairman of the IBC Group, said: “We are very excited by the ‘proof of stake’ concept proposed for the Ethereum 2.0 smart contracts and are locking up 20,000 eth which is a one way trip till phase 2, this lockup shows our confidence in ETH2 and dedication to the beacon chain. The greener and more efficient version being introduced in the second iteration addresses the unsustainably high energy consumption required by the ‘proof of work’ model, making it even more attractive.”
His comments come as Bitcoin, which has suffered plenty of wild price swings since it was launched in 2009, is seeing investors flock during the pandemic-driven volatility on global stock markets.
On Wednesday, Bitcoin had climbed more than 7 percent to $17,891, its highest level since December 2017.
Dubai-based entrepreneur Khurram Shroff
Some analysts said the Covid-19 pandemic has encouraged investors to reassess the long-term outlook for Bitcoin and other cryptocurrencies but there are still concerns about the fraudulent trading in cryptocurrencies following a succession of high-profile hacks.
Ethereum founder Vitalik Buterin has announced December 1 as the date for the “Genesis” launch, which will require 16,384 validators to stake 524,288 Ether into the contract – equivalent to around $230 million – for Ethereum 2.0 to go live.
Shroff, who is sending three tranches totalling 21,984 units for a total of 687 validators, currently valued at around $10 million, said: “Blockchain holds the promise to transform virtually all human interactions and transactions.
“We believe the decentralized ‘distributed consensus’ model favoured by Ethereum 2.0 will unlock multiple avenues for growth and innovation,” he added.
(From left) Navin Gupta, managing director for South Asia and MENA at Ripple with Arif Amiri, CEO of DIFC Authority
In an official announcement, DIFC said that Ripple has selected the centre due to its regulatory structure and reputation as the leading global financial hub in the Middle East, Africa, and South Asia, also known as the MEASA region.
Arif Amiri, CEO of DIFC Authority, described Ripple as a perfect partner with an aligned vision to shape the future of finance.“Ripple is one of the most exciting client additions to DIFC this year. They are well regarded globally for innovation in the finance industry and therefore is a perfect partner and client for DIFC, given our vision to drive the future of finance,” Amiri added.
Navin Gupta, managing director for South Asia and MENA at Ripple, said: “Ripple already has a significant client base in the MENA region and the opportunity to co-locate with our customers made DIFC a natural choice. Our regional office will serve as a springboard to introduce our blockchain-based solutions and deepen our ties with even more Financial Institutions in the region. We feel very welcome in our new regional home at DIFC.”
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