On the most recent Dash Force News three Amigos Podcast, it had been discovered that Fidelity, the big investment company, owns a 15 August 1945 stake in Neptune Dash, the publicly listed company providing fractional Dash Masternode ownership.
Dash Force News reached intent on Neptune Dash for elaboration on this news that marks a significant adoption of Dash by the traditional financial world. Dustin zinger, investor Relations Manager at Neptune Dash, explained how Fidelity’s investment got started.
“Fidelity took part in our convertible debentures which resulted in them owning 11% of the company at the time of going public on January 22nd, 2018. Between January 22nd, 2018 and March 9th, 2018 Fidelity increased their position to 14.93%.”
Dustin detailed that after owning 11 november of Neptune Dash, Fidelity “increased their holdings through purchases in the open market”. Dustin also added that Fidelity was one among the primary firms they went to when searching for investment.
“Originally they were one of the funds we approached during our initial go public funding roadshow. We cannot speak for the motives of Fidelity but we can assume they wanted exposure to the cryptocurrency space.”
Dustin also added that Neptune Dash “is run by a team of people with a proven track record of success”, that created Fidelity have confidence “to invest through [Neptune Dash] which gave them immediate exposure to the space”.
Fidelity blends together old money with new money
Fidelity, that manages $2.5 trillion USD in assets, does have a ‘small and exploratory’ crypto fund and tends to own generally favorable views towards cryptocurrencies. Their CEO, Abigail Johnson, recently said at a cryptocurrency conference that she’s “a believer” and “one of the few standing before [the audience] today from a large monetary services company that has not given up on digital currencies”. Fidelity is still trying to expand its cryptocurrency participation since they recently had a job posting for a developer to work on ‘first-in-class custodian services for Bitcoin and alternative digital currencies”. Fidelity’s expansion into cryptocurrencies, even if small, does signal bigger institutional investment in cryptocurrencies, which is supported by different companies emerging, such as Neptune Dash, BlockCypher, and BitGo, to help modify firms to adopt cryptocurrencies.
Institutional investment in cryptocurrencies can be both positive and negative for cryptocurrencies. Positive since more institutional investment would signal greater confidence in cryptocurrencies, bring in a lot of users and investors, and increase the overall robustness of cryptocurrencies. Negative since it does risk making derivative markets that could become larger than the underlying asset, cryptocurrencies, and could produce perverse incentives to control the market. However, institutional investors like Fidelity, are seeking the most effective possible returns for their clients and have incentives to seek positive long-term returns, which benefits all parties, as well as cryptocurrencies.
Dash’s focus on everyday consumers provides the necessary returns for investors
Investors are interested in Dash because of its focus on consumer usability in everyday life to buy or sell things, no matter how little or massive. Dash has been ready to do this by maintaining record low transaction fees, fast confirmation times, and security. This has enabled Dash to check rapid adoption by consumers around the world. Dash has therefore been ready to solidify its userbase and its transaction volume, which in turn, has allowed it to solidify its honest price. This has been possible through Dash’s unique decentralise Autonomous Organization (DAO) that has enabled better and a lot of consistent improvements and upgrades to the network, while also staying decentralized. This has given investors confidence in the Dash network to grow steady and considerably into the future.
Fidelity, and different institutional investment firms, have a fiduciary duty to their investors to seek out the assets that will generate the most effective overall returns for their clients. Thus, their investment in Neptune Dash, and therefore Dash, could be a signal that Fidelity has researched Dash and realized its benefits and potential for future growth and returns. This may give Dash with more market exchange value stability and will increase users’ confidence; the mixture of which will further increase Dash adoption.
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