Institutional Investors Become Priority for the Cryptocurrency Industry
Crypto YouTuber Lark Davis points out several important events that have unfolded in the cryptocurrency space, and how major banks are getting into the space.
Among these developments are MicroStrategy’s additional Bitcoin purchase, the launch of Ethereum’s first zero-knowledge proof virtual machines, MetaMask’s new login feature, and Nasdaq’s plan to offer cryptocurrency custody services.
MicroStrategy, a leading cryptocurrency intelligence company, has acquired an additional $150 million worth of bitcoin, bringing its total holdings to $138,955. The company recently paid off a $161 million loan from Silvergate Capital, and raised $339.4 million this year through its sales program, which was then invested in bitcoin.
Repayment of the loan allowed 34,619 bitcoins to be returned to MicroStrategy.
Ethereum’s Scaling Network, Polygon, and ZK SYNC have launched the first Ethereum virtual machines (ZK EVMs) to prove zero-knowledge in an effort to enable faster, cheaper, and decentralized transactions on the Ethereum mainnet. Polygon co-founder calls ZK Proofs the “holy grail” for scaling the Ethereum network.
MetaMask, a popular cryptocurrency wallet, has added a “Login with Ethereum” feature, allowing users to authenticate web services with their wallets in a more secure way using web3 technology. Developed in partnership with Spruce, this feature allows users to review website names, session details, and security measures.
Nasdaq plans to launch cryptocurrency custody services by the end of June, initially offering bitcoin and ethereum storage. The move follows similar initiatives by companies like Fidelity and BlackRock. However, some expect this to be part of a broader effort to bring cryptocurrencies under the control of major banks and financial players.
Fidelity launched bitcoin and ethereum trading for retail traders, while all crypto banks were closed, forcing crypto firms to do business with JPMorgan. Critics argue that this is a power grab by the biggest players on Wall Street – such as JP Morgan, Goldman Sachs, BlackRock, Fidelity and Nasdaq – at the expense of the digital currency industry.
Moreover, the CBDC is seen by some as miserable, with many individuals and institutions likely to gain or lose large sums of money depending on the outcome of ongoing legal cases in the United States.
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