Following in the footsteps of Tesla, Chinese language app maker Meitu has joined the ranks of cryptocurrency funding.
Within the early 2010s, Meitu reached such dominance within the portrait touch-up house that its eponymous flagship app turned a verb for “picture beautifying” in China. However in recent times, as smartphones turned to supply built-in filters, picture editors like Meitu are struggling to carry their lead. Meitu’s inventory shrank from HK$18 apiece in 2017 to lower than HK$3 immediately.
As the corporate turns 13 years previous and seeks various development, it units its eyes on cryptocurrency.
Meitu bought 15,000 models of Ether and 379.1214267 models of Bitcoin value round $22.1 million and $17.9 million respectively on March 5 in open market transactions, the corporate disclosed Sunday. The acquisition is the primary tranche of the agency’s funding plan to purchase as much as $100 million value of cryptocurrency, which is financed by its money reserves.
In latest instances, Meitu chairman Cai Wensheng has been an outspoken advocate of blockchain technologies. Although China has banned preliminary coin choices and crypto buying and selling exchanges, Cai stated in 2018 that he personally bought about 10,000 bitcoins.
His help for cryptocurrencies is manifested in Meitu’s newest funding transfer. Within the disclosure, the corporate states:
“The Board takes the view that blockchain expertise has the potential to disrupt each current monetary and expertise industries, much like the way by which cellular web has disrupted the PC web and lots of different offline industries. The Board believes that the blockchain trade continues to be in its early stage, analogous to the cellular web trade in circa 2005.”
It continues: “Towards this backdrop, the Board believes cryptocurrencies have ample room for appreciation in worth and by allocating a part of its treasury in cryptocurrencies also can function a diversification to holding money treasury administration.”
Meitu additional explains that the Bitcoin funding is a part of its “asset allocation” plan whereas its wager on Ether will help its common blockchain endeavor, whereby it’s contemplating baking blockchain into its numerous abroad companies, together with Ethereum-based dApps. It’s additionally seeking to spend money on abroad blockchain initiatives “that may be synergistic to its massive consumer base.”
As of June 2020, Meitu claimed almost 300 million month-to-month energetic customers on its suite of apps launched throughout the globe.