Is 2021 the year of Crypto Consolidation?
I offer you my over simplified take on how markets work. As with any industry there are first to markets then those that tag along and steal market share. As more and more competition pile into the market it naturally creates weak firms. Those either fail or get acquired.
Updated 3/2/21 - PayPal to acquire Crypto Custody firm Curv
Updated 1/11/21
- NYDIG Acquires Digital Assets Data
- Bakkat exchange agreed to merge with VPC Impact Acquisition Holdings, a special purpose acquisition company sponsored by Victory Park Capital.
Updated 1/8/21
- Coinbase acquires execution platform Routfire!
Today CoinDesk Acquired TradeBlock, which Adds Indexes and Pricing to News, Events Offerings to their offferings. Of course, no financial terms were disclosed.
Who else has thrown around acquisition money? Also announced today was the Argentina’s Ripio (formerly known as BitPagos) acquired the Second-Largest Crypto Exchange in Brazil. Also, way back on Dec. 1 2020 we had PayPal-Backed Identity Platform was acquired by Nevada’s Blockchains LLC . Then in the ancient times of November 2020 ConsenSys acquired Blockchain Developer Toolmaker Truffle Suite. So, the industry is mature enough to have a few large acquisitions already underway. Assume that Big players and Crypto Gorillas are scouring the landscape for other targets.
Who else is ripe for acquisition? First, let me say I wish I a crystal ball which showed me, however, since I don't. I suspect we will see a Crypto Exchange or two get inhaled by a behemoth creating an ever larger monster. Then you have a few shitcoins that don't provide overall value to society but have one cool niche and thus a driving incentive to be acquired.
Timing? I suspect late in 2021 the acquisitions will start as the Bull run will be nearly complete. I could be 100% wrong on my timing. Or the SEC could shift the entire Crypto landscape cratering a few overnight.
Summary - Acquisitions are a natural part of free markets and help the market grow stronger. Will you be there to scope up value?
Enjoy the Journey!
