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Private Blockchain Project Funding Accelerates as Companies Race to Address New Needs – Bitcoin News

Private Blockchain Project Funding Accelerates as Companies Race to Address New Needs – Bitcoin News

Blockchain operations are increasingly embracing more traditional financing from big-name venture funds to leverage these strategic stakeholders’ benefits instead of crowdfunding avenues popularized during the last blockchain hype wave.

In a significant departure from the last crypto startup wave focused on raised public capital in the form of initial coin offerings (ICO), token sales, and exchange launches, today’s advancing blockchain initiatives are increasingly tapping private capital from venture funds. Though the sums awarded aren’t eclipsing the billions raised by projects in previous years, the latest developments are positive for companies, funds, and users at large.

A blockchain VC investment leverages the expertise and due diligence of the fund itself, lending greater credibility to the underlying project. Accordingly, companies turn to these more traditional funding outlets to bolster project reputations and burnish their credentials.

As business interest in blockchain continues to accelerate, decentralized blockchain has concluded a €10 million private token sale that is designed to help the blockchain expand its footprint in the enterprise arena.

Concordium, which recently announced a partnership with Geely Group, plans to deploy the funds to help large companies adopt blockchain across multiple areas after rigorous testing of its protocol-level ID concept. The blockchain, which can support smart contracts, self-sovereign IDs, and more, plans to launch its mainnet during the second quarter.

Even when amounts are more limited relative to past crypto fundraising drives, the operations receiving private funding are by no means insignificant and by nature reflect the shifting infrastructure of the whole ecosystem.

Ethereum staking protocol Stakewise is among the organizations that have recently closed a private funding round. The ETH2 staking protocol is on the cusp of its mainnet launch after initiating an Early Adopters Campaign and landing a modest private funding round worth just $2 million. The latest financing following its seed capital from Collider Labs was led by Greenfield One alongside Collider Ventures, Gumi Cryptos, Lionschain Capital, and other private investors.

Another project ramping up is Automata Network, a leading privacy-oriented middleware protocol. A joint $1 million raise arrived from a consortium that includes Alameda Research, Divergence Capital, Genesis Block Ventures, IOSG Ventures, and KR1.

The company, which focuses on adding complementary Web3 privacy functionalities and infrastructure to existing projects, intends to use these funds to further product research and development while also enlarging Automata Network’s footprint and community engagement.

Do you see blockchain companies returning to crowdfunding in the future as the market matures and trust regained? Let us know what you think in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: coingraph.uno


Publicly Listed Maker of Billion-User Chinese App Meitu Buys $40 Million of Bitcoin and Ether for Its Treasury – Bitcoin News

Publicly Listed Maker of Billion-User Chinese App Meitu Buys $40 Million of Bitcoin and Ether for Its Treasury – Bitcoin News

One of China’s top internet app makers, Meitu Inc., is adding up to $100 million worth of cryptocurrencies to its treasury, joining a growing list of companies worldwide to do so. The company has already purchased $40 million worth of bitcoin and ether for its balance sheet.

Chinese public company Meitu Inc. announced Sunday:

The group has purchased 15,000 units of ether and 379.1214267 units of bitcoin (BTC), both cryptocurrencies, in open market transactions at an aggregate consideration of approximately US$22.1 million and US$17.9 million respectively, on March 5, 2021.

Founded in 2008, Meitu is one of China’s top internet enterprises utilizing AI-driven image-and-video processing technologies for editing user-generated mobile content.

According to its website, Meitu’s flagship app has accumulated more than 1 billion users worldwide. As of June 2020, there are 2.08 billion unique devices with Meitu’s products activated on them, and a total of 295 million monthly active users of Meitu apps. Meitu’s total number of overseas users has exceeded 823 million users, with over 10 million users each in 15 countries including Indonesia, Thailand, Pakistan, Vietnam, the US, Brazil, Japan, Bangladesh, the Philippines, South Korea, Malaysia, Nigeria, Mexico, Canada, Turkey.

Meitu is listed on the Hong Kong stock exchange under the stock code 1357.HK. Its shares rose as much as 14.4% on Monday morning after the news of its cryptocurrency purchase.

The coins purchased “will reside with renowned cryptocurrencies trading platform(s) engaged by the group with good security measures set up,” the company explained.

The announcement further details that “These purchases were made pursuant to a cryptocurrency investment plan previously approved by the board of directors” of the company. Under the plan:

The group may make a net purchase of up to US$100 million worth of cryptocurrencies, financed by its existing cash reserves other than any remaining proceeds from the company’s initial public offering.

Meitu is the latest company to say it will hold cryptocurrencies as part of its treasury reserves. Last month, Elon Musk’s Tesla Inc. revealed it had bought $1.5 billion worth of bitcoin and will soon accept the cryptocurrency as a means of payment for its products. Meanwhile, the Nasdaq-listed Microstrategy has accumulated almost 100K bitcoins.

Do you think more Chinese companies will add bitcoin to their balance sheets? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: bitcoin-core-news.com

Author: by admin


Chinese selfie app pours cash into bitcoin and could buy more

Chinese selfie app pours cash into bitcoin and could buy more

Hong Kong (CNN Business)Tesla turned heads last month when it revealed that it had invested big in bitcoin. Now a Chinese company is jumping on the cryptocurrency bandwagon, too.

Meitu, a tech firm known for a popular photo-editing app, said Sunday that it bought some $40 million worth of cryptocurrency. That includes about $18 million worth of bitcoin and more than $22 million worth of etherium.

“Cryptocurrencies have ample room for appreciation in value,” the company said in a filing to the Hong Kong stock exchange.

    Meitu added that buying the cryptocurrencies helps the company diversify its cash holdings, and said it showed that the firm wants to “embrace technological evolution, and hence prepare its foray into the blockchain industry.” It added that the company’s board has approved it to buy as much as $100 million worth of cryptocurrency.

      Both currencies rose early Monday, but soon reversed gains.

      What cryptocurrency will become the main one in a year?
      BitcoinEthereum

      Bitcoin was last down 2.4% to trade at $49,560 per coin. Ethereum was down 0.3% to $1,676. Meitu’s stock, meanwhile, was volatile in Hong Kong. It surged as much as 14%, but closed down more than 6%, as tech stocks sold off.

      Meitu, which means “beautiful pictures” in Chinese, makes selfie image-enhancing apps that allow users to make their eyes look wider, skin lighter, and faces slimmer. It has nearly 300 million monthly active users, according to its most recent financial report.

      Prices of cryptocurrencies have surged in recent months, benefiting from a weaker US dollar and expectations that a prolonged period of super low interest rates would create inflation.

      Cryptocurrencies have also been getting validation from big names in Corporate America.

      Bitcoin recently saw its market value shoot past $1 trillion — largely thanks to Tesla (TSLA), which said last month that it had bought $1.5 billion worth of bitcoin. Elon Musk’s carmaker also said it was looking at letting consumers use bitcoin to buy its cars and SUVs.

      Payments giants Square (SQ) and PayPal (PYPL) recently began allowing customers to trade bitcoin. Credit card processing behemoths Visa (V) and Mastercard (MA) are also embracing cryprocurrencies.

      But there are some risks.

      Bitcoin has pulled back a bit from its February peak, with a current market value of about $930 billion, according to Coinbase.

      Meitu acknowledged in its company filing Sunday that crypto prices “in general” are “highly volatile,” leading it to focus on just the two market leaders.

      US Treasury Secretary Janet Yellen, meanwhile, expressed worries last month about bitcoin’s wild price fluctuations. Bitcoin has fallen 15% in the past two weeks, but is still up more than 70% since start of this year.

        “It is a highly speculative asset, and I think people should beware. It can be extremely volatile, and I do worry about potential losses that investors in it could suffer,” Yellen said at a conference in New York.

        — Paul R. La Monica contributed to this report.

        Source: www.cnn.com

        Author: Laura He, CNN Business


        Two New DeFi Assets Skyrocket As Bitcoin and Ethereum Move Sideways

        Two New DeFi Assets Skyrocket As Bitcoin and Ethereum Move Sideways

        A new breed of decentralized finance (DeFi) assets are popping up as Bitcoin (BTC) and Ethereum (ETH) continue to consolidate.

        Alchemix (ALCX) is a DeFi protocol that allows users to take out loans that can repay themselves over time by using the collateral to generate yield.

        Alchemix takes deposits via DAI, and then converts the DAI into its native stablecoin called alUSD to give out loans.

        Users can loan up to 50% of their deposits on the Alchemix platform and settle their debts by leaving their deposits to generate yield, repaying with alUSD or DAI whenever they want, or using part of their collateral. Shortly after launch, the platform gained more than $500 million in total value locked.

        According to CoinGecko, ALCX skyrocketed 435% in a week from a low of $279.54 on February 27th to an all-time high of $1,497.27 on March 6th.

        Another DeFi asset that has burst on the scene is Inverse.Finance (INV), which according to CoinGecko, surged 449% in just two days from a low of $377.60 on Friday to a high of $2,075 on Sunday.

        INV is a protocol that aims to give users a no-loss investment strategy with any token by utilizing a dollar-cost averaging (DCA) system with stablecoin yields. By depositing DAI and allowing a yield optimizing protocol to generate earnings, profits get continuously swapped to your crypto asset as long as you have the INV vault token.

        In February, Inverse.Finance announced the launch of their Anchor Protocol, which is a money market centered around DOLA, a native, synthetic stablecoin.

        Although both Inverse.Finance and Alchemix hit the ground running, it remains to be seen whether they will continue to perform or pull back in the notoriously volatile and high risk DeFi market.

        Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

        Source: dailyhodl.com


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