JPMorgan Chase seems to really hate bitcoin and crypto, as long as you ignore the millions of dollars they are throwing into this area.
For years, the investment bank has pursued investments in blockchain and cryptocurrency, as well as being the talk of the industry. That trend was recently continued by JPMorgan President Daniel Pinto, who pointed out Monday CNBC That crypto is a small asset class that is “irrelevant in the scheme of things.”
Dear JP Morgan, You seem confused on crypto
JPMorgan Chase may be the largest of the four big investment banks, but it seems confusing on the topic of crypto whether it is coming or going.
In a recent interview CNBCThe company’s president, Daniel Pinto, downplayed the impact of crypto in international markets.
“The reality is that the current form of crypto has become a minor asset class that is irrelevant in the scheme of things,” Pinto said. Nevertheless, the executive acknowledged that something may be going on in the wider region, when he said, “
The seeming apathy on the part of JPMorgan is in some respects a move.
In 2021 the company’s CEO, Jamie Dimon, insisted that “I personally think bitcoin is worthless.”
Previously, Dimon called bitcoin a “fraud” and “stupid gold,” while calling the cryptocurrency a “decentralized Ponzi scheme.”
JPMorgan Following the Crypto Trail
While JPMorgan executives are all having fun bashing the blockchain, the company is following policies that contradict their orders.
In 2019, the company launched its very own cryptocurrency (or is it a decentralized Ponzi scheme?) in the form of JPM Coin.
In 2020, the bank created an entire blockchain division called Onyx, which according to them was “the world’s first bank-led blockchain platform for the exchange of value, information and digital assets.”
The company also has a range of blockchain and crypto investments to its name.
This year alone, the bank participated in a $60 million funding round for on-chain analytics firm Elliptic, and a $32 million funding round with competing organization TRM Labs.
In 2021, the deals were huge. In January 2021, JPMorgan invested $100 million directly in Figure, a company that leverages blockchain technology in the mortgage market. Other investments include ConsenSys, the company behind MetaMask. In that instance, JPMorgan participated in a funding round with UBS and Mastercard, which raised $65 million combined.
What does all this mean?
While it is difficult to measure JPMorgan’s total investment in blockchain, the company has publicly stated that it spends $12 billion a year on technology projects. This includes machine learning or artificial intelligence in the form of blockchain.
Why, then, so much hatred for the men above? It’s hard to say with any confidence, but when words and actions are wrong, it’s probably better to judge them by their actions. Even the haters want those sweet crypto profits.
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