In a recent press release, the co-founder of NYDIG, Ross Stevens, cautioned traders against investing in a non-Bitcoin asset, stressing that the company has always been and will continue to be a Bitcoin-first firm.
The statement from NYDIG, a subsidiary of the holding firm, Stone Ridge, highlights the risks associated with investing in non-Bitcoin products.
Stone Ridge is a dedicated industry player, having been involved in establishing innovative firms across the technological landscape and the digital finance ecosystem. In addition, the firm offers Bitcoin-based products to institutions like banks, insurance companies, and fintech.
According to the NYDIG vision, it aims to align “strict regulatory standards and top-notch technology to expand Bitcoin adoption.”
Moreover, the warnings came a few days after the collapse of the once-large FTX empire following the liquidity problems that have enveloped the troubled crypto exchange. On November 11, FTX filed Chapter 11 bankruptcy proceedings in the United States, as announced by its CEO, Sam Bankman-Fried.
The recent NYDIG blog post stressed that attacks on the decentralized finance (DeFi) space are rising. As a result, the article’s authors strongly warned against investing in non-Bitcoin cryptocurrencies and DeFi.
NYDIG has partnered with several industry players over the past few years. However, the document stated that the firm is driven by individuals with a proven track record for excellence. Thus, the company can reduce the number of investment blowups that have frequently occurred in the digital asset industry.
Also read:Making Due Diligence
According to the NYDIG article, the firm has had countless opportunities to invest in crypto projects that will generate enormous profits. However, its data shows such projects are destined to collapse. Moreover, participating in such activities violates the United States Securities Act.
The document stated, “Life by design is too brief to participate in short-term gains.” Also, the best is to partner with people one can trust and be bold enough to say it is promising even when the bullets are raining down.
Early last month, NYDIG announced the promotions of Tejas Shah and Nate Conrad as its CEO and President, respectively. Furthermore, the company’s press release for October shows that its Bitcoin balance for the third quarter of 2022 has reached its all-time high with a close to 100% increase.
Similarly, its net revenue soared to 130% in Q2, followed by another increase at the end of Q3. The newly appointed executives will build on the previous momentum by focusing on fast-tracking NYDIG’s investments.
The company intends to focus on its Mining Solutions franchise, the largest North American mining business. In addition, it intends to deploy its Lightning Network for banks and other enterprises to help develop next-generation wallets and global payment solutions.
Meanwhile, Bitcoin-based investment tools are in high demand by institutions looking to diversify their investment portfolios into digital currencies. Institutions looking to venture into the crypto industry do so with Bitcoin exchange-traded funds (ETFs) because they are less risky investment tools.
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