Bank of America becomes bullish on metaverse

GB Market Commentary 02/12/2021

by Marcus Sotiriou

Crypto.com exchange continues its spending spree as it has now purchased two of IG Group’s trading assets. This deal gives Crypto.com a route to offer some derivatives and futures to US customers. As Crypto.com is based in Singapore, the two US based exchanges which they are acquiring will give them an entrance into the US market. The five-year-old privately held company has 3,000 employees around the world and has achieved 20-times revenue growth this year alone.

Crypto.com’s CRO token has increased dramatically since the start of November from around $0.21 to around $0.71 at time of writing, but it’s tremendous growth may not stop here as they have now gained access to the US markets.

The metaverse hype is ongoing as Bank of America director of research says that the metaverse is a massive opportunity where cryptocurrencies will be widely used as currencies. He said “I definitely believe this is a massive, massive opportunity.” However, he also said that he thinks existing cryptocurrencies are likely to be too volatile for this purpose and that some types of stablecoins will come to dominate. I personally think existing cryptocurrencies, like MANA for Decentraland, will be widely adopted in metaverses due to the incentives which the founders can implement for using the native currency as payment. This news comes after Morgan Stanley said last week that the metaverse is the next big investment theme, and Grayscale stating recently that the metaverse is potentially a $1 trillion business opportunity. It appears the metaverse has been a key driver for new investors to join the space as it is clear how they will be utilised in this revolutionising virtual world.