Due to the Decline in Cryptocurrency Prices, Software Company Meitu Suffered Losses of up to $52.3M
- In the spring of 2021, the software developer purchased 31,000 ETH and 940.89 BTC.
- Meitu, a Cayman Islands-based company, is well-known in China for its related AI-powered face beautifying software.
- Major cryptocurrencies’ prices have dropped significantly over the last month.
Meitu’s losses are due to the falling value of cryptocurrency, which the company has invested in. In the first half of 2022, Meitu lost nearly 300 million yuan, almost double the amount lost in the same period last year. The decline in cryptocurrency prices has hit Meitu hard.
The company’s crypto holdings have decreased in value, leading to significant losses. Meitu is not alone in facing losses due to the volatility of cryptocurrency markets. Many other companies and investors have also suffered as a result of the fluctuating prices. Cryptocurrency prices are notoriously volatile, and this has led to many investors losing money.
While some people believe that cryptocurrencies will eventually stabilize and become more stable investments, others remain skeptical about their future prospects. Only time will tell whether or not cryptocurrencies will become more stable and mainstream investments.
Meitu’s app uses AI to airbrush users’ selfies, and the company has been praised for its smooth user interface and accurate results. However, some have critiqued the app for making people look “plastic” and “unnatural.”
The cryptocurrency markets have been in a state of flux over the past month, with prices falling sharply across the board. Bitcoin, the largest and most well-known cryptocurrency, lost nearly 38% of its value in June, its second-biggest monthly decline since it was created in 2009.
While Meitu‘s app may be controversial, there’s no denying that it is popular among its users. And as cryptocurrencies continue to fluctuate in value, it will be interesting to see how Meitu fares in the months ahead.
In a filing with the Securities and Exchange Commission (SEC) on Tuesday, Chinese tech firm Meitu revealed that it had invested around $100 million in bitcoin and ether. The purchase, which was made in the spring of 2021, saw Meitu buy 940.89 BTC and 31,000 ETH.
Since making the investment, however, the company has not sold or bought any more cryptocurrency. Meitu’s move into crypto appears to be part of a wider trend among Chinese firms. In recent months, a number of companies have announced plans to invest in bitcoin and other digital assets.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
