As the market fell, Grayscale Investments acquired nearly $1 billion worth of cryptocurrencies in 24 hours. Total assets under management of Grayscale Investments totaled $45.8 billion, up from $44.9 billion a day earlier.
The company increased its Bitcoin trust (GBTC) portfolio by $283.3 million and bought some more Ether for $586.5 million. Grayscale Investment also added some altcoins to the portfolio, increasing investments in Horizen (ZEN) by 16.89% and in Livepeer (LPT) by 13.25%.
Ok, I get Bitcoin, Ether, and ZEN. But what did Grayscale analysts see in Livepeer? $LPT has skyrocketed from about $1.3 in January 2021 to $27 at the moment. Moreover, its ATH ($39.74) was reached on April 5, literally three weeks ago. In the Greyscale Livepeer Trust portfolio, the total investment in LPT is only $12.1 million, and the total return on the asset since acquisition is 442.8%.
Livepeer is a decentralized video transcoding network built on the Ethereum blockchain technology. Today 80% of the Internet bandwidth is occupied by streaming video broadcasts. And their growth has increased by 7 times due to the pandemic and the widespread transition to online conferences and classes. It's easy to understand: Videos are engaging, educating, enlightening, and empowering.
But for businesses, streaming video is insanely expensive, and live streaming is even more expensive.
Why? Because broadcasters who want to distribute video over the Internet need to recode it first. Transcoding is the process of reformatting the original video file so that regardless of your network bandwidth - be it 2G or 5G - you can view this video in optimal quality. One video on the fly must be transcoded into 5-10 formats at once.
Currently, these processing costs are about $3/h per stream on a cloud service like Amazon, up to $4,500 per month for a single media server, and up to $1,500 per month for a content delivery network, excluding Internet costs. This is a lot!
Livepeer is a scalable platform for developers looking to add live streaming or video-on-demand to their projects. It aims to improve the reliability of video streaming while reducing the associated costs by up to 50 times.
To achieve this goal, Livepeer is building a peer-to-peer infrastructure that interacts through the exchange. The security of the platform is ensured by the Ethereum blockchain technology. If you have a computer with a powerful video card at home, you simply connect it to the Livepeer network and it mines or transcodes video for online broadcasts.
This is a fundamental analysis from the world's largest fund.
When you realize exactly how large funds form their portfolios, it will become easy to understand why among the assets there are no such coins as Dogecoin or XRP.
