Billionaire Venture Capitalist Tim Draper Invests $1.25 Million in BTC Payment Startup OpenNode

Legendary billionaire venture capitalist, Tim Draper, has reportedly invested $1.25 million in OpenNode, a bitcoin (BTC) payment processing service provider.

Million Dollar Investment To Be Used For Expanding Operations

The seed round for OpenNode was announced on Tuesday (December 18th) and the BTC-only payment processor told Coindesk that the funds raised would be used to recruit more staff to help the company expand its business operations. Additionally, OpenNode’s management team will ensure that the company’s operations comply with regulatory guidelines.

According to OpenNode’s official website, the company’s payment processing services allow customers to “automatically convert” bitcoin to their “local currency at the time of transaction and avoid all price volatility.” These crypto-to-fiat conversions are also “risk-free” as OpenNode provides a “cryptographically secure platform”, two-factor (2FA) authentication, and 24-hour customer support.

In order to settle transactions more quickly, OpenNode’s software uses the Lightning Network (LN), a second-layer payment channel designed to reduce transaction processing times and fees. In exchange for its currency conversion services, OpenNode charges a 1% commission on each transaction.

Lightning Network (LN) Grows By 15,000%

Commenting on the steady growth of the LN, OpenNode’s management confirmed that the layer-2 payment network had grown by over 15,000% to a 456 BTC capacity. An OpenNode representative also said: 

We’ll continue to tackle new emerging markets where the Lightning Network can cut costs, promote creative payment models, and refine the current user experience with payments.

Notably, Draper’s million dollar investment into supporting OpenNode’s operations has come after the founding partner at Draper Associates made many other investments in various crypto projects. In 2016, Draper led a $4.2 million series A funding round to support Factom, a company focused on the development of blockchain-based document authentication platforms.

Earlier in 2015, Draper also took part in a $760,000 investment round for Bitwage, a bitcoin (BTC) payroll startup. In the same year, the founder of Draper University participated in a $8.8 million series A round involving Mirror, a firm focused on developing a smart contract trading platform.

Tim Draper Stands By $250,000 BTC Price Prediction

As CryptoGlobe reported in November, Draper said he was sticking to his $250,000 bitcoin price prediction (by 2022). During a panel discussion, the venture capital investor remarked: 

Believe it, it’s going to happen – they’re going to think you’re crazy but believe it, it’s happening, it’s going to be awesome!.

As an early cryptocurrency adopter, Draper notably bought 30,000 bitcoins at the US Marshals Service auction, after they had been seized from the Silk Road black marketplace. When questioned about whether he still owns the large amount of cryptocurrency, Draper revealed at a Web Summit conference last month that he is not only “hodling” those bitcoins but he has also invested a lot more in the digital currency ecosystem.

You Can Now Buy Crypto With Visa and Mastercard via Binance App for Android

Siamak Masnavi

On Thursday (April 25), Binance announced that its mobile app for Android now lets you buy with Mastercard or Visa some of the most popular cryptocurrencies that are listed on Binance.com.

According to Binance, this support for cryptocurrency purchases via debit/credit cards, which is possible as a result of the partnership with Fintech startup Simplex that was announced on January 31, is available in version 1.5.8.0 or higher of the "Binance - Cryptocurrency Exchange" app for Android.

Since January 31, it is has been possible to buy on the main Binance website (Binance.com) Bitcoin (BTC), Bitcoin Cash (BCHABC), Ether (ETH), Litecoin (LTC), and XRP using debit/credit cards (Mastercard and Visa). Then, on March 12, it became possible to do the same on Trust Wallet (Binance's official non-custodial wallet app). And now, the Binance app for Android joins the party by offering the same feature.

 

Here is what you need to do to buy crypto via debit/credit cards on the Binance app for Android:

  • Tap on the "Credit Card" button, which is the last button on the toolbar you see in the middle of the "Home" screen. This takes you to the "Buy Bitcoin" screen.

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  • On the "Buy Bitcoin" screen, you can choose from a dropdown list the cryptocurrency you want to buy (BTC, XRP, ETH, LTC, or BCHABC), specify the quantity of a particular cryptocurrency that you want to buy, and choose the fiat currency (USD or EUR) you want to pay with.

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  • You will then be shown the total amount (including the fee) that you will get charged if you go ahead with the purchase.

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  • Once you tap on the "Buy Now" button on this screen, you will be shown a "Confirm Your Order" screen.

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  • If you then tap on the "Accept, go to payment" button on the confirmation screen, you will be taken to the checkout screen on Simplex.com, where you will be asked to enter into a form your personal details (email, phone number, date of birth) and your card details.

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Here are a few things you should be aware of:

  • "The crypto amount quoted is based on the current rate and is not final. If the rate changes by more than +/-2.5% you will be asked to reconfirm the transaction via email from Simplex"
  • The fee is "3.5% per transaction or 10 USD, whichever is higher."

Featured Image Credit: Photo via Pixabay.com. Screenshot Images Courtesy of Binance