A Chinese Photo Editing App Company Has Bought $40 Million Worth of Cryptocurrencies

Meitu is a Chinese company that has invested $22 million in Ethereum. This image editing software-based company is very popular in China, Hong Kong, and Taiwan. Teenagers and millennials use the app to add filters and edit their pictures, making them attractive and glamorous. The photo editing app is also present on the Hong Kong Stock Exchange list. It has recently announced that it holds approximately $40 million worth of Ethereum and the world’s leading cryptocurrency, Bitcoin. 

Cryptocurrency Investment Plan

The Chinese firm stated that it is following an investment plan based on cryptocurrency, and the company intends to purchase $100 million worth of multiple cryptocurrencies. The money for these investments arrives from the available cash reserves of the image editing company. To be exact, the photo editing app has bought 15,000 tokens of Ethereum which accounts for approximately $18 million, and 380 BTC, which is worth around $22 million. 

Meitu earns major profits from advertisements on its platform. The selling of these advertisement spots on the photo beautifying app earns the company a huge sum as last year, and the Chinese firm made $107 million in profits. Other than this, there are no major sources of profit for the Chinese public company, but the recent investments in cryptocurrencies and the cryptocurrency investment plan might be the future means of high profit. 

Incessant Money Printing and Cryptocurrencies

Meitu hopes that the future might bring a surge in the values of cryptocurrencies in the crypto market. The company does not acknowledge holding cash as an asset. The firm further elaborated this point by stressing that cryptocurrencies have room to expand in the future, and investing in these cryptocurrencies can also bring diversification to the objective of holding cash. 

The people at Meitu explained that rampant printing of money by central banks all over the world had caused the devaluation of cash. The past year comprehended a lot of money printing, which might cause inflation and affect the economy in general.  

Many companies and firms, including Meitu, rely on cryptocurrencies to save them from this expected over-inflation. Many businesses and organizations invested heavily in the flagship cryptocurrency, but the investments of Chinese image editing software company displays that Ethereum is also turning out to be a good alternative for firms.  

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