Anchorage Digital Considers Cancelling Litecoin Custody Support and Reducing Focus on NFTs

03/15/2023 04:10 • Tech Trends • 90 views

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 crypto custody bank, is reportedly considering canceling the utilization asset custody support, including Litecoin. The company believes that it needs to provide services to customers in the current and expected markets in areas of greatest concern. This decision means that Anchorage Digital will reduce its investment in institutional-level NFT features as well, as its business has low institutional demand for certain types of digital assets, such as NFTs. Despite the low adoption rate of institutional NFTs, the retail investors’ NFT trading volume remains strong, with a trading volume of over $2 billion in February 2021.

Anchorage Digital’s decision to cancel Litecoin custody support and reduce the focus on NFTs comes as a surprise to many market participants. Litecoin is one of the most established cryptocurrencies, and it has been around since 2011, making it one of the oldest cryptocurrencies. However, analysts believe that Anchorage Digital’s decision is primarily based on providing services to customers in areas of greatest concern. As demand for other cryptocurrencies increases, Anchorage Digital may have to shift its focus to provide better services to its customers.

The decision to reduce its investment in institutional-level NFT features may also be a result of the company’s low institutional demand for certain types of digital assets. NFTs have gained significant popularity in recent months, with several high-profile sales making headlines. However, the high prices of NFTs and the fact that they are relatively new may deter institutional investors from investing in them. Retail investors, on the other hand, are more willing to invest in NFTs, as evidenced by the $2 billion trading volume in February 2021.

In conclusion, Anchorage Digital’s decision to cancel Litecoin custody support and reduce its focus on NFTs may be a result of the company’s need to provide services to customers in areas of greatest concern. Despite the low institutional demand for NFTs, retail investors continue to show interest in them, as evidenced by their strong trading volume. The decision may also indicate a shift in Anchorage Digital’s focus towards providing better services to its customers as demand for other cryptocurrencies increases.

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Anchorage Digital Considers Cancelling Litecoin Custody Support and Reducing Focus on NFTs

Anchorage Digital: Consider eliminating low utilization digital asset hosting support

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