Říj 20

Crypto-Mergers and Acquisitions Increased by 200% in 2018

Institutional investors, venture capitalists, and other well-heeled entities “in the know” are using a year-long bear market to buy up future technologies for what might turn out to be pennies on the dollar.

It Takes Money to Make Money

Yesterday CNBC reported that most of  2018 has been a “deal frenzy” for cryptocurrency and blockchain-related companies as mergers and acquisitions (M&A) are reported to have increased by 200 percent. Pitchbook had JMP Securities crunch M&A data the results showed that by the end of 2018 there will have been 145 M&A deals.

The data is inclusive of majority investments, partial and full acquisitions but it does not pinpoint the exact dollar amount spent for each deal. JMP did mention that most of the M&As are “relatively small” as the sum is less than $100 million. The uptick in M&As took place as Bitcoin declined to trade nearly 53% below its January price.

Interestingly, buyers did not appear deterred by Bitcoin’s fall from $20,000 in January as the $830 billion dollar market capitalization began to disintegrate. In fact, according to Satya Bajpai, the head of blockchain and digital assets investment banking at JMP Securities, “You’re seeing a mispricing of assets.” Bajpai believes that the majority of crypto-startups have token values that “remain correlated to Bitcoin” and this phenomenon “can create an ideal opportunity for strategic acquirers.”

Crypto is an Investors Smorgasbord

Bajpai used the analogy of a “land grab” when describing how the rapid pace of growth and innovation in a new sector compels investors to buy up technology producers instead of attempting to build their own platform. Bajpai explained that “[The M&A route is] expensive, but you get the technology and product immediately. This industry is like a treadmill – the only way to keep up on a treadmill is to keep running by investing in new technology.”

The Ends Justifies the Means

Bajpai also pointed out that hasty acquisitions come with significant risks as a number of the companies scooped up during mergers and acquisitions are startups in infancy and have yet to prove themselves. Nonetheless, the uptick in mergers and acquisitions shows that many investors are willing to look past these issues as the potential for future returns could far outweigh these risks.  

What do you think about venture capitalists and institutions purchasing crypto-startups? Share your thoughts in the comments below! 

Images courtesy of JMP Securities, Shutterstock.

Pro 20

Evidence Emerges of CNBC Collusion with Roger Ver, BCash

· December 20, 2017 · 5:30 am

Mainstream news network CNBC is under intense scrutiny as evidence emerges its senior staff used connections to plug Bitcoin Cash (BCH).

CNBC On BCash Rise: ‘Deal With It’

As Bitcoin prices dropped below $17,000, BCH, which is also known as BCash, suddenly shot up in value on US exchange Coinbase, hitting around $9000.

The average price of 1 BCash coin across major exchanges is now almost $3500, a rise of 45% in 24 hours.

While the events unfolded, CNBC, which had controversially hosted major BCash proponent and Bitcoin critic Roger Ver on its TV network, began broadcasting tweets of a highly suspicious nature compared to its usual tone.

The tweets, according to cryptocurrency commentator WhalePanda among others, were compiled under the auspices of marketing and partnership manager Gaby Wasensteiner, whose husband, Paul Wasensteiner, is executive director of the so-called ‘Bitcoin Cash Fund.’

“(Roger Ver) aka Bitcoin Jesus joins us tomorrow to discuss the biggest change to the crypto world since time was invented! Must see TV.. (Bitcoin Cash) is here… deal with it!!” the first such tweet reads from CNBC Fast Money’s official account.

Critical responses received answers including “deal with it” and threats to unfollow those who did not agree with CNBC’s pro-BCash perspective.

BCash’s Wasenstein ‘Took Over’ CNBC Twitter

So unusual is the style and lack of neutrality of the news network’s tweets that cried of foul play are currently echoing through the cryptocurrency community.

“Collusion” between the Wasensteiners and Ver himself is an increasingly conspicuous narrative, with users on Reddit noting Paul Wasensteiner is also the founder of a London BCash meetup.

WhalePanda meanwhile continued the suspicions, arguing it was in fact Paul who orchestrated the CNBC tweets.

“What I’m saying is that her husband is actually tweeting,” he clarified.

The sudden burst of what is known in the cryptocurrency industry as ‘shilling’ – a concerted yet often covert effort to increase or decrease the reputation of a coin or entity – marks a new turn in rival coins’ ability to manipulate broader market sentiment.

What do you think about CNBC’s BCash tweets? Let us know in the comments below!

Images courtesy of Twitter, Shutterstock