Chinese language magnificence app Meitu purchased $40 million value of cryptocurrency • TechCrunch

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 area that its eponymous flagship app grew to become a verb for “picture beautifying” in China. However lately, as smartphones grew to become 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 in the present day.

As the corporate turns 13 years outdated and seeks various development, it units its eyes on cryptocurrency.

Meitu bought 15,000 items of Ether and 379.1214267 items 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 current 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 mentioned 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, just like the way by which cell web has disrupted the PC web and lots of different offline industries. The Board believes that the blockchain trade remains to be in its early stage, analogous to the cell web trade in circa 2005.”

It continues: “In opposition to this backdrop, the Board believes cryptocurrencies have ample room for appreciation in worth and by allocating a part of its treasury in cryptocurrencies can even 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 varied abroad companies, together with Ethereum-based dApps. It’s additionally trying to spend money on abroad blockchain initiatives “that may be synergistic to its giant consumer base.”

As of June 2020, Meitu claimed almost 300 million month-to-month lively customers on its suite of apps launched throughout the globe.

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