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MicroStrategy Raps Hard: Is the Collapse of the Crypto Exchanges Imminent?

2 mins
Updated by Michael Washburn
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In Brief

  • MicroStrategy creates a buzz thanks to its new project . . . and no, it’s not an investment!
  • Innocent as it may sound, the project could be a slap in the face to crypto exchanges.
  • A new MicroStrategy portfolio may usurp many of the functions that the exchanges consider their domain.
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The giant of Bitcoin investment, MicroStrategy, returns to the forefront of the scene with a project that might have very bad consequences for certain enterprises.

MicroStrategy Momentarily Puts Investing Aside

After having made a splash with the success of its Bitcoin investment strategy, MicroStrategy, the tech company directed by Michael Saylor, has recently announced its plans to enter a new domain. One with profound implications for crypto.

In fact, its founder has revealed on Twitter that MicroStrategy would develop its own crypto portfolio. It will be specially designed for businesses. The future wallets will at once be based on its principal Bitcoin network, and on its second layer, Lightning Network. In any event, Michael Saylor does not cease to sing its praises.

Throughout the course of this project, MicroStrategy seeks to offer a better experience in the use of cryptocurrencies. Notably, for societies that have not really taken the leap. All while promoting the adoption of Bitcoin as a means of payment.

In this area, the company aspires to promote the payment of compensation, even including salaries, made by its client businesses directly in Bitcoin. The reactions in the crypto sphere are unanimous, with many users expressing joy at the ability to test this option.

A Business That Will Cast a Shadow Over Crypto Platforms?

According to Mark Palmer, an analyst at Berenberg Capital Markets, MicroStrategy could well have the assets necessary to supplant the crypto platforms, Coinbase in particular.

While the latter must grapple with pressures from the SEC, and the regulator has handed the exchange a setback that may be very hard to make good on, the future of the platform seems, more than ever, to be compromised.

Moreover, for Palmer, the situation may entail a significant fall in the value of much of what he analyzes. In this context, he recommends that investors consider MicroStrategy as a better alternative. Attention, however: every investment carries a risk, and experts can always be wrong!

But that is not all: if the MicroStrategy portfolio comes to enjoy success upon its launch, the company may attract more employees. The latter may abandon exchanges already in decline amid the excess of self-governance.

The moral of the story: the race of crypto platforms has to end somewhere. Will the winner bear the name of MicroStrategy?

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Laure Elizabeth IACOUCCI
After traveling the world as an artist, Laure Elizabeth decided to settle down and dive into the world of cryptocurrency. Based in France, she has several years of experience in journalism and translation into different languages. She is now dedicated to informing the public of the latest industry news.
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