After Tesla, it is now Meitu Inc, a Chinese photo-editing app’s turn to announce that it has invested in cryptocurrency.
While China has banned cryptocurrency trading exchanges and initial coin offerings, Chinese Companies have been vocal about offering their support to crypto. Cai Wensheng, the chairman of Meitu Inc. has been a vocal supporter of cryptocurrency since 2018. His support is also reflected by the company’s latest investment move.
Meitu is a technology company that was established in China as far back as 2008. The core idea behind the company is to make everyone look beautiful. After turning 13 years old, setting eyes on cryptocurrency sure seems like a positive move for the company. The investment in crypto has led to the company’s shares to go up.
Last week Meitu had disclosed that it had bought about 379 units of Bitcoin and 15,000 units of Ether. The accumulative worth of both the crypt tokens is estimated at $40 million. Out of this total amount, Bitcoin is worth $22.1 million and Ether’s worth is $17.9 million. This is the company’s first investment in it $100 million cryptocurrency investment plan.
Recent figures show an increase of 14.4% in Mietu’s shares.
Meitu is the newest company on the bloc to announce its cryptocurrency investment plans. Tesla had announced in February that it had purchased Bitcoins worth $1.5 billion. Following this announcement, the digital assets price rose by 20%. It is now to be seen whether Meitu’s investment announcement will send the price of the token soaring just like Tesla’s announcement did.
Cryptocurrency has gained a lot of admiration over time and big names are now investing in it, which sure is adding value.
According to Meitu, it took such a step as part of its investment plans, in addition to preparing for the blockchain industry. The company added that it would fund it from its prevailing cash reserves.
Meitu is presently assessing the viability of merging blockchain technologies with its foreign businesses. This could involve projects on the Ethereum blockchain system.
Cryptocurrency really is picking up pace and making its place in the mainstream market. Companies like Tesla and Meitu have already disclosed their investments in the digital asset. Recently there was also speculation about PayPal acquiring the crypto developers, Curv.
There are a number of factors that have influenced companies and people to buy and invest in cryptocurrency. Firstly, the media has been actively publishing positive news about the digital currency, attracting buyers to buy it. Secondly, conventional investment and finance firms are seen investing in the crypto market. Finally, ever since Bitcoin’s price has risen, it is being compared to gold. Where gold was seen as a good investment, people are seeing Bitcoin as its competitor.