Your daily dose of crypto news

Ordinals Driving Positive Momentum in Bitcoin Innovation

2 min read

Ordinals Driving Positive Momentum in Bitcoin Innovation

Franklin Templeton Digital Assets, the digital assets division of asset manager Franklin Templeton, has released a note to its investors introducing Bitcoin-based nonfungible tokens (NFTs). The company attributes a surge in innovation within the Bitcoin space to the Bitcoin Ordinals protocol. It also highlights other contributors to Bitcoin innovation, such as new fungible token standards like BRC-20 and Runes, Bitcoin-based layer-2 networks, and Bitcoin decentralized finance (DeFi) primitives. Franklin Templeton acknowledges the increasing activity in the Bitcoin NFT space and notes that Bitcoin has gained dominance within the NFT ecosystem. It mentions several Bitcoin Ordinals collections that are dominating the NFT space in terms of trading volume and market capitalization.

While Franklin Templeton expresses optimism about Bitcoin Ordinals, it also cautions that these assets may lose value and have no bank guarantee. The company emphasizes that these assets are not insured by the Federal Deposit Insurance Corporation (FDIC) and reminds investors of the risks associated with all investments, including the loss of capital. Franklin Templeton acknowledges that digital assets carry unique risks due to their immature and rapidly developing technology, as well as their vulnerabilities.

Franklin Templeton has been introducing its investors to various niches within the crypto space. In March, the company published an investor note on memecoins, recognizing their potential for quick profits but also noting that they have no inherent value. The company has also entered the market for exchange-traded funds (ETFs), launching a spot Bitcoin ETF earlier this year and participating in the race for a spot Ether ETF by submitting an S-1 filing with the United States Securities and Exchange Commission (SEC).

Leave a Reply

Copyright © All rights reserved.