Block.one returns big, big bucks

A Bitcoin start-up has become much more than small change, by adding millions of dollars to the accounts of three already wealthy investors.

A buyback by American cryptocurrency start-up Block.One, is returning as much as 6,567 per cent to early investors in less than three years.

It means if you invested $145,000 in 2016 you would get $9.6m in the buyback, according to Bloomberg.

The pay-out has added to the wealth of three billionaires; PayPal co-founder Peter Thiel; British hedge fund manager Alan Howard, and American philanthropist Louis Bacon who were among the early investors.

Block.One’s decision and payout surprised some sections of the crypto marketplace which has been undergoing analysis of late following something of a crash in its market place last year.

“It’s very much the odd one out,” according to Tom Shaughnessy, who Bloomberg credits as a co-founder of Delphi Digital, a crypto research firm in New York.

Block.One is said to have raised more than $6b in a sale of digital tokens.

A plank of the company’s public appeal was its on developing key building blocks to provide greater security on the internet.

The company says it is planning to announce a social media product in June.