Anchorage Digital may cancel Litecoin custody support
On March 15th, a spokesperson for the crypto custody bank Anchorage Digital revealed that it is currently considering canceling the utilization asset custody support, including Litecoin, because the company needs to provide services to customers in the current and expected markets in areas of greatest concern. In addition, the spokesman also revealed that Anchorage Digital will reduce its focus on NFT. He said, “Anchorage Digital’s business has low institutional demand for certain types of digital assets (such as NFT), so it will reduce its focus on these digital assets, which means that after the recent release of NFT features, it will reduce investment in institutional level NFT features.” However, according to data from DappRadar, despite the low adoption rate of institutional NFT, However, retail investors’ NFT trading volume remains relatively strong, with a trading volume of over $2 billion in February 2023.
Anchorage Digital: Consider eliminating low utilization digital asset hosting support
Analysis based on this information:
Anchorage Digital, a leading crypto custody bank, has disclosed that it is contemplating canceling the utilization asset custody support, which includes Litecoin, among other digital assets. The move is necessitated by the need to focus on serving customers in the present and expected markets in areas of greatest concern. Also, the spokesperson of Anchorage Digital noted that the company’s business has low institutional demand for some digital assets, including NFTs. Consequently, the company plans to reduce its focus on these digital assets despite recently launching NFT features.
The decision by Anchorage Digital to cancel Litecoin custody support may have significant implications for the cryptocurrency. Since it is a popular digital asset, its exclusion from Anchorage Digital’s custody support may impact its adoption in the market. However, the company’s decision to reduce its focus on NFTs is not expected to have significant effects since institutional demand for the digital asset is low.
Despite the low institutional demand for NFTs, retail investors’ trading volume remains relatively strong. In February 2023, NFT trading volume stood at over $2 billion, according to data from DappRadar. This indicates that even though institutional investors may not be interested in buying NFTs, individual investors continue to trade them.
In conclusion, Anchorage Digital’s decision to cancel Litecoin custody support is a typical business decision aimed at focusing on the company’s core competencies. As digital assets continue to gain popularity, crypto custody banks will need to provide customized services that meet the evolving needs of their customers. Additionally, Anchorage Digital’s move to reduce its focus on NFTs could indicate that the digital asset may not be ready for institutional investors, but retail investors still consider it valuable.
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