Ark Invest founder Katie Wood got rid of all of PayPal’s assets and showed great confidence in the long-term growth of Cash App, a payment system that uses the Bitcoin Lightning network.
Financial technology company PayPal is using Venmo’s payment app as a direct competitor to Cash App from Block (formerly Square).
In an April 8 interview with CNBC, Wood said she made the decision to abandon PayPal in favor of Cash App because of its more comprehensive approach to integrating digital asset wallet.
“We tend to bet on who we think will be the winner … Because we consolidated our portfolios during a period of no risk, we chose Block over PayPal,” she said.
Wood also added that Cash App’s future success is due to the organic growth of the app’s users, in contrast to Venmo’s more downward movement.
She noted that retail investors are still driving the cryptocurrency market.
Venmo currently has 70 million users and $850 million in revenue, while Cash App’s user base is estimated at 44 million customers and $2.03 billion in revenue.