- Leading Chinese technology company, Meitu, announces further investment in the crypto sector.
- This move is seemingly in line with its long term digital assets investment plan.
- The company firmly believes that cryptocurrencies are poised to replace fiat currencies in the future.
Apart from the well-known whales of the industry, including Tesla and MicroStrategy, which have pumped vast amounts of money into cryptographic assets, several relatively more minor companies have also pushed for diversification in their portfolios by including digital tokens. A Chinese smartphone and selfie company Meitu Inc. is the latest to join the bandwagon as it has announced a $10 million investment recently.
Tokens – the currency of the future
The publicly listed company founded in 2008 firmly believes that cryptos will be the alternative to cash in the future. Pursuant to that belief, the firm launched a “cryptocurrency investment plan” to protect its assets against fiat money depreciation. As of today, the company holds $100 million worth of cryptos in its treasury. All of the tokens are either Bitcoins, the most popular crypto in use today, and Ether, the native token of the Ethereum blockchain.
Earlier, the firm had acquired 31,000 ETH tokens and 765.20724325 BTC tokens in several open market transactions, costing $90 million. On April 8, the company added an additional 175.67798279 BTC tokens at an estimated cost of $10 million. Thus, its “cryptocurrency investment plan” has given rise to a milestone of $100 million investment in the crypto sphere. It is still not clear whether the company would choose to trade in cryptos or resort to holding.
Technology partner Coinbase
Meitu reasoned that digital assets would appreciate in the future given their increasing popularity and high profile investments. Moreover, governments all over the world are warming up to regulating the crypto sphere leading to greater public participation and mass adoption of Bitcoins. In such a scenario, crypto exchanges are responsible for ensuring transactions’ safety and security. Coinbase is one such exchange that Meitu has chosen to manage, secure and store the company’s digital assets. Coinbase also has been contracted by MicroStrategy before to do the same task.
Thus, as the sphere of influence of cryptocurrencies grows, it becomes more involved with mainstream economics. Greater investments into this realm can be expected by private companies in the future.
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