2018 saw a swift decline in crypto prices which slowed cryptocurrency based businesses and ICOs. Only companies with a decent amount of liquidity have scaled up during the year. 2017 sent a frenzy in the entire ecosystem launching many small and big projects, however, 2018 has seen a more cautious approach.VCs and institutional investors are looking at the scene from a distant place.
Mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets through various types of financial transactions. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. In all cases, two companies are involved. The term M&A also refers to the department at financial institutions that deals with mergers and acquisitions. M&A activities are the backbone of Wall Street and it seems to be seeding to the cryptosphere.
Lars Seier Christensen, Danish Saxo Bank founder says:
“I am also looking at a couple of serious fund vehicles that do extensive research across the space. Because of course there will be some gold nuggets that have been dragged down unfairly in this bear market as happens in all bear markets.”
Satya Bajpai, the head of blockchain and digital assets investment banking at JMP securities says that he is looking at something like a “land grab” across all innovative technologies where people are jumping to capitalize on IP, employees, and markets. The company’s data shows that 115 deals have been announced this year with more than 30more that can add to the list by the year ends. In contrast, 2017 only saw 47 M&As.
Some Notable M&As In 2018
Decentralized ERC20 trading platform Paradex was acquired by Coinbase. Ern.com was also acquired by the company for an astonishing $100 million. Established financial firms like Goldman Sachs didn’t hold back. Their startup Circle acquired Circle. Coinsource acquired a Bitlicense for the state of New York making it the first company to do so.
British brokerage firm Primus Capital Markets was acquired by Trade.io to offer BTC-backed Forex trading. Joseph Lubin’s software company Consensys has acquired space startup Planetary Resources. Rakuten Inc. a prominant Japanese internet company got the hold of a crypto exchange to dive into the crypto ecosystem.