Ark Invest Dumps PayPal And Favors Cash App Instead

Ark Invest dumps PayPal and favors cash app instead while Cathie Wood believes that Venmo is only a follower of Cash app that generated double the revenue from half the number of users so let’s read more in today’s latest cryptocurrency news.

Crypto investment company Ark Invest and its founder Cathie Wood decided to dump all of the company’s holdings of PayPal and showed bigger confidence in the growth of Cash App which uses the BTC Lightning Network. Wood explained this move at the Miami Bitcoin 2022 conference that ended on Saturday. The Lightning Network is a layer-2 solution for BTC which is meant to facilitate faster and cheaper transactions and the company operates the payment app Venmo is a direct competitor with Block’s Cash App.

“@ARKInvest has sold, completely got out of Paypal, whose Venmo is a big competitor to Cash App.

(Cash App has) much more conviction – especially when it comes to bitcoin.” pic.twitter.com/mUGkdWGMFX

— Miles Suter (@milessuter) April 10, 2022

Ark Invest dumps PayPal and Wood said that she made the decision to do so due to the comprehensive approach that Cash App has, towards the digital asset wallet integration. She also said that Venmo started to accommodate BTC but it is still a follower of Cash app:

“We tend to put our bets with who we believe will be the winners […] As we consolidated our portfolios during a risk-off period, we chose Block over PayPal.”

Wood continued that her company’s conviction in Cash App came from what she believes to be an organically-driven growth in users as opposed to more of the top-down approach from Venmo. Wood thinks that the retail investor drove the crypto market up to the point:

“I don’t think most institutional investors are positioned the way they ultimately will be. Retail has really led the charge here.”

Venmo boasts 70 million users and $850 million in profit compared to the Cash App’s 44 million and $2.03 billion in 2021 profits. The big contrast n the ability to net profits can be another motivating factor for the Ark Assessment of the two brands. Ark Invest took a bullish stance on Cash App and its BTC product lead Miles Suter announced that the American users will be able to invest a portion of the direct deposits into BTC. Wood is a strong BTC supporter who repeated her prediction in the interview that the coin could hit $1 million by 2030.