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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 21

Coinbase BCash Scandal: Ver Says Insider Trading A ‘Non-Crime’

· December 21, 2017 · 5:30 am

Bitcoin.com owner and Bitcoin Cash (BCash) proponent Roger Ver has described Coinbase’s insider trading scandal as a “non-crime.”

Ver: Advance Trading Would Have Been Better

Speaking in a new interview with CNBC, which this week also came under scrutiny for its sudden BCash support, Ver implied it was up to users to “be careful” when using cryptocurrency exchanges.

“I think insider trading is a non-crime… If a bunch of people had traded in advance, then the price wouldn’t have been nearly as volatile,” he told hosts including pro-Bitcoin Brian Kelly.


Ver’s previous appearance on the network ignited a storm on social media, with figures such as Max Keiser opposing the network’s choice of guest for mainstream viewers. Keiser described BCash as “borderline fraud” and CNBC as “fake news.”

Responding to Kelly’s query as to whether BCash’s increased popularity would cause it the same challenges as Bitcoin currently faces, Ver continued that bigger blocks would avoid issues such as network congestion.

Reddit User Says ‘Mate At Coinbase’ Confirmed BCash Launch

Yet the ties between Ver and the media giant run deeper.

As Bitcoinist reported Wednesday, an out-of-character spate of pro-BCash tweets from CNBC revealed the work of Gaby and Paul Wasenstein, a husband-wife team which worked both as its director of marketing and organized BCash events.

A photograph of Paul Wasenstein with Ver holding a CNBC logo has been circulating around cryptocurrency social media circles.

Predictably, the backlash from Bitcoin users angered by the sudden BCash promotion continues to mount.

Slush, creator of the first Bitcoin mining pool and Trezor hardware wallet  CEO, wrote on Twitter that the matter of BCash, along with the ongoing insider trading scandal at Coinbase, was a “decentralization matter.”

“Avoid both,” he added, with ShapeShift CEO Erik Voorhees describing his own objections as “politicized propaganda.”

On Coinbase’s promised investigation into the insider trading, analyst Tone Vays meanwhile unearthed what he considers evidence staff broke rules about BCash prior to the release.

A Reddit thread Vays found shows user u/mukiwa2 tell users he “has a mate at (Coinbase),” which allowed them to know it would shortly add Bitcoin Cash.

u/mukiwa2 has since deleted the comment.

What do you think about the latest comments from Roger Ver about insider trading? Let us know in the comments below!

Images courtesy of Twitter, Shutterstock