Twitter CFO Ned Segal believes that it is now pointless to invest in bitcoin and other cryptocurrencies, and called investing in securities more appropriate.
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conversation with the Wall Street Journal, Ned Segal said that in the near future Twitter is not going to buy bitcoin, otherwise the social network will have to revise its entire investment policy. Segal said Twitter has a preference for less volatile assets like securities.
As of the end of September, Twitter had $ 3.47 billion in cash and cash equivalents, while in the same period last year this amount was $ 1.99 billion. Twitter’s short-term investment amounted to $ 3.94 billion. Segal named them as reasons why Twitter does not plan to invest in crypto assets. instability and lack of specific rules governing the digital asset industry.
In recent months, many firms have been urging the US government to develop a regulatory framework for cryptocurrencies. Recently, OKEx’s director of financial markets, Lennix Lai, said the regulation would lay the foundation for the development of cryptoassets, in particular DeFi. The CEO of the Binance cryptocurrency exchange, Changpeng Zhao, also believes that digital assets cannot fully develop without state control. The main task of regulators is to protect the interests of users and reduce their risks, Zhao said.
However, payments company Square, led by Twitter founder Jack Dorsey, is not intimidated by the uncertainty over cryptocurrency regulation – Square bought 4,709 BTC last year. Earlier, Square’s CFO Amrita Ahuja said that Bitcoin could bring financial benefits to the company in the long term. Square sees great potential in it, and the Bitcoin purchase proves that the company is “in the game,” Ahuja added.
At the same time, Segal noted that Twitter is exploring various options for using bitcoin. In September, the social network officially launched the BTC tip system to expand the payment options for users.
Nevertheless, Segal’s statements about the “pointlessness” of investing in digital assets could be one of the reasons for the correction of the cryptocurrency market. Bitcoin is down to $ 58,574 today, with major altcoins following.
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