Billionaire Entrepreneur Peter Thiel’s investment companies, Ethereum $4,719.02In June, he gained serious gains from his value of 13.5 percent. Experts point out that Thiel’s strategic investments in Ethereum have remarkable consequences in the crypto currency market.
Ethereum Investments and Company Strategies
Thiel, one of the founders of Paypal, adopts a venture capital approach that focuses on Ethereum -based companies. Thiel’s Founders Fund company has 7.5 percent of Ethzilla, previously operating in the field of biotechnology and is now directed to buy Ether. It is also emphasized that the company also controls 9.1 percent of Immersion Technologies, which collects $ 250 million for Ether purchases of Ether.
Ethzilla’s market value rose from $ 18 million to $ 741 million after the announcement of Thiel’s investment. Bitmine Immersion Technologies has gained more than 1,000 percent since the end of June and reached a market value of $ 8.3 billion. Both companies reflect the prediction that Thiel can be widely adopted by Ethereum.
Increased role of Ethereum in traditional finance
Thiel’s investments are based on Ethereum’s view that it can play more and more roles in the traditional financial infrastructure. It is stated that important financial companies such as Blackrock and Franklin Templeton tokened some parts of their funds on Ethereum. In addition, Blockchain -based financial products are released by Goldman Sachs and Bny.
The transaction volume in the Ethereum network increased from last year’s $ 960 billion to $ 1.2 trillion this year. Most of the trading volume is large crypto stock market transactions with stable crypto coins such as Tether and USD Coin. Some experts have question marks as to whether this mobility is based on realized institutional acceptance or speculation.
Risks and Effect of Politics
Sector resources suggest that the existing US administration approaches more positively to digital assets and may be effective in increasing Ethereum investments. Scott Bessent, at the beginning of the treasury, supports the interest of investor that stable crypto currencies can play a role in country debt management. Finally, the adoption of the Genius Act law increases the interest in dollar -fixed digital tokens.
According to The Wall Street Journal, the Trump administration’s positive approach to digital assets gives additional acceleration to Ethereum investments, ”.
However, some critics think that investments in Ethereum are still very risky and unpredictable. It is claimed that some of the activity on the network is caused by false mobility, such as fraud or spam operations. For this reason, uncertainty about whether Ethereum can achieve a permanent success in the traditional finance area.
According to a market analyst, “Most of the current mobility may not reflect the real institutional demand”.
As a result, Peter Thiel’s Ethereum -oriented investments experienced serious value increases; It is thought that the volatility, speculation and regulatory developments of the crypto currency market may be decisive in investment decisions.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
