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New Coinbase Competitor? James Altucher Bets Big

Serial Investor Raising $10 Million for New Exchange

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In the digital era, James Altucher is one of the busiest bees around. The hedge fund manager, investor and multiple startup founder has had his fingers in a great many pies, including StockPickr and now Bitzumi.

Straight Competitor?

Bitzumi’s website seems to place it in direct competition with other exchanges such as Coinbase. It offers buying, selling and trading in all the largest cryptocurrencies, with its own online wallet system being a feature. It also allows Bitcoin to fiat conversions for e-commerce and other services. They plan to raise $10million for the development of services, but the company’s aim is broader than a simple exchange. According to the SEC filing, their intention is to grow the business not just upwards, but sideways. One of the areas detailed in the filing is e-newsletters, which would be of great interest to part-time investors. Depending on content though, their attraction could be use.

Proceeds

Proceeds from the money raised will be used in the following areas:

  • Software and exchange development
  • Marketing, with a special focus on dominating search engines such as Google
  • Implementing an incentive platform to get new customers on board
  • Licensing for international exchange
  • General setup and R&D costs

James Altucher has not always been a successful investor and/or co-founder, but this latest venture has a clear plan and an ambition for serious backing. CEO Scott Cohen, founder of a $300m New-York based hedge fund, will also be lending his experience to this latest venture. Expect the necessary investment to be raised fairly quickly.

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