Harvard University’s investment arm, Harvard Management Co., has jumped into the crypto market at a time when several experts say surging crypto prices are about to collapse again. Harvard University’s $39 billion endowment has reportedly joined two other investors in spending a cumulative $11.5 million to back Blockstack Inc., a crypto-company seeking to raise $50 million for its digital-token offering. Meanwhile, technical indicators suggest that the volatile cryptocurrency space could see its recent gains reverse quickly, per a detailed Bloomberg story.
Why Digital Coins Could Crash Again
- Bloomberg Galaxy Crypto Index is at its most overbought since hitting a record last year
- Index has climbed about 25% this month to its highest level since January 2018
- After hitting that high of $1,667, it proceeded to fall more than 65% in the three months following
Crypto Wins Institutional Money
According to a regulatory filing, Harvard Management and other institutional backers have purchased roughly 95.8 million of Blockstack tokens. The company’s network was built by computer scientists at Princeton and allows engineers to develop secure applications for things like documents and blogging.
The news presents a win for the cryptocurrency space, which has been vying for funding from deep-pocketed backers. Initial coin offerings, the digital currency market’s answer to an IPO, have largely tanked, and the price of popular coins like Bitcoin remain a whopping 75% off highs. Reeling in institutional money has been viewed as a milestone for the cryptocurrency space as it attempts to work past regulatory uncertainty, and investor fears concerning various issues like fraud, money laundering and market manipulation.
Crypto-Company Offers ‘Stacks’ Coin
Blockstack’s new funding will reportedly be used to continue development of the company’s decentralized computing network, which uses the digital currency. Blockstack’s digital coins, called…