Tim Draper wins the Bitcoin auction

The winner

Tim Draper – A venture capitalist was the sole winning bidder of the USMS bitcoin auction which featured nearly 30,000 bitcoins. Mr Draper was the auction winner and he teamed up with the Bitcoin exchange Vaurum to help provide liquidity to the emerging market.

Avish Bhama, the co-founder of Vaurum said:

Vaurum has launched trading platforms in emerging markets, and we will be partnering with Tim to leverage the pool of 30,000 bitcoins as a liquidity source, It’s still quite difficult to get access to Bitcoin in these developing economies — and that’s exactly where it is needed the most.

After winning the auction Tim Draper provided a statement:

“Bitcoin frees people from trying to operate in a modern market economy with weak currencies. With the help of Vaurum and this newly purchased bitcoin, we expect to be able to create new services that can provide liquidity and confidence to markets that have been hamstrung by weak currencies.

Of course, no one is totally secure in holding their own country’s currency. We want to enable people to hold and trade bitcoin to secure themselves against weakening currencies.”

Selling price

It is still unknown what price the bitcoins sold for, however because Mr. Draper outbid all of his competitors he must have payed a high price for the coins. Obviously he cannot dump the coins on an exchange because he would end up with a net loss, so the best move to do at this point is to use the bitcoins to make more. Tim’s strategy is to invest in an exchange and make money from trading fees. Essentially Mr. Draper will use his 30,000 bitcoins to help start up a bitcoin exchange.

That is great news to the Bitcoin community because those types of actions/investments are what help bitcoin grow and develop. We will be keeping an eye out for the Vaurum exchange and do not forget to follow us on twitter @btc_feed to receive the latest news!