Chinese selfie app converts cash to bitcoin

 Chinese selfie app converts cash to bitcoin

Hong Kong (CNN Business) Tesla gained attention last month when it announced that it had invested heavily in bitcoin. Now, the Chinese company is also joining the victory over the cryptocurrency.

Meitu, a tech firm known for its popular photo-editing app, said on Sunday that it had bought around $ 40 million worth of cryptocurrency. This includes about $ 18 million worth of Bitcoins and over $ 22 million worth of Ethereum.

Meitu added that the purchase of the cryptocurrency is helping the company diversify its cash holdings, and said it shows the firm wants to embrace technological evolution and therefore prepare its foray into the blockchain industry.He added that the company's board approved the purchase of up to $ 100 million worth of cryptocurrency.

Both currencies rallied early Monday morning but reversed their gains soon after.

Bitcoin last fell 2.4% to $ 49,560 per coin. Ethereum fell 0.3% to $ 1,676. Meanwhile, Meitu's shares in Hong Kong were volatile. It rose 14% but closed more than 6% on a sell-off in tech stocks.

Meitu, which means pretty pictures in Chinese, makes selfie enhancement apps that allow users to make their eyes wider, their skin lighter, and their faces slimmer. According to the latest financial report, it has around 300 million monthly active users.

Cryptocurrency prices have risen in recent months, fueled by a weakening US dollar and expectations that a prolonged period of ultra-low interest rates will lead to inflation.

Cryptocurrencies have also received confirmation from big names in corporate America.

But there are risks.

Bitcoin has moved slightly off its February peak with a current market value of around $ 930 billion, according to Coinbase.

On Sunday, Meitu admitted that cryptocurrency prices are in general very volatile,which is why the company is focusing on only two market leaders.

Meanwhile, US Treasury Secretary Janet Yellen expressed concern last month about sharp fluctuations in bitcoin prices. Bitcoin has dropped 15% in the past two weeks, but has still grown more than 70% since the beginning of this year.

This is a very speculative asset and I think people should beware. It can be extremely volatile and I am really worried about the potential losses that investors in it could incur, Yellen said at a conference in New York.

 Chinese selfie app converts cash to bitcoin

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