- Two major crypto entities, Ripple and FTX have expressed their wish to carry out acquisitions.
- They will look for companies that will facilitate them to acquire more users or regulatory licenses, highlights the FTX US President.
- Ripple CEO Brad Garlinghouse also anticipates a surge in Mergers and Acquisitions in the crypto sphere. 8
Ripple and FTX, the top crypto companies, have recently expressed to CNBC that they are looking for acquisitions as the sector expects to drive growth via purchasing new firms.
It is an indication that some crypto entities feel that they are large enough and well-capitalized to put their efforts and money into acquisitions.
According to the president of cryptocurrency exchange FTX U.S., Brett Harrison, who highlighted in an interview last week that the company is in a very good spot with respect to its capital and cash. And that they would look around the market for potential merger and acquisition opportunities.
Furthermore, he highlighted that FTX U.S. will look for companies that will facilitate them to acquire more users or regulatory licenses.
And that they are doing that globally, in places like Japan, Dubai Australia, basically varied places where they have been able to either partner with local companies or do acquisitions to be able to get licenses that they require.
For instance, earlier in 2020, FTX acquired Blockfolio, a trading platform that helped it attract more users.
Whereas, if we talk about Ripple, CEO Brad Garlinghouse of the payments company signified that the company has a strong balance sheet. And predicted a surge in mergers and acquisitions in the crypto space.
He cited last week that he thinks there will be an uptick in M&A in the blockchain and crypto space. People have not seen that yet. But he thinks that’s likely in the future. And he certainly thinks as that unfolds, they would consider things like that.
Furthermore saying that they are now at a stage of growth where he thinks they are more likely to be the buyer versus the seller.
M&A activity increased in the year 2021, which also simultaneously happened with major crypto assets reaching new highs.
But as of now, there are a lot of bearish trends in the overall crypto market as the crypto assets are witnessing quite low prices. It is to see if this becomes a factor for the larger players to carry out acquisitions,