In 2018 there was a rapid decline in initial coin offerings, a slowdown in blockchain launches and a bearish cryptographic market. During this period, companies with good liquidity expanded and strengthened with the acquisition of start-ups.
Read also: Global Cryptocurrency M & As Rise
M & A Deal Frenzy in 2018
In 2017 the number of cryptocurrency and blockchain companies launched has more than doubled compared to the previous year. The current bearish market that characterized 2018 proved the ideal time for institutional investors and venture capitalists to conquer a land and acquire innovative startups. <img class = "size-medium wp-image-266128 alignright” title=”The triggers of the Crypto Bears market increase in M & A Activity” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/acquisitions-300×188-300×188.jpg” alt=”Crypto Bears Market Trigger Increases in M & A Activity "width =" 300 "height =" 188″/>
There was a kind of frenzy that involved cryptocurrency and blockchain-related companies that saw mergers and acquisitions (M & A), which increased 200% in 2018. M & A is the life blood of Wall Street and this activity should continue to accelerate within the cryptosphere as we head towards 2019.
In an interview with news.Bitcoin.com, Danish founder Saxo Bank, Lars Seier Christensen, revealed that he is actively seeking to acquire cryptographic assets, saying: "I am also looking into a couple of background research vehicles. deep in all the space, because obviously there will be some gold nuggets that have been unjustly dragged into this bear market, as happens in all the bear markets. "
According to the head of the blockchain division and digital asset banking of JMP Securities, Satya Bajpai, the industry is witnessing a "grounding" for innovative technology, access to new markets, intellectual property and talented employees through M & A , reports CNBC.
The latest JMP Securities data and Pitchbook data show that this year 115 global operations have been announced, with around 30 additional expected by the end of this year. This compares with just 47 mergers and acquisitions that have been completed throughout 2017.
Rundown of Key M & A Deals from 2018
Some important acquisitions of crypto and blockchain have been acquired this year, with Coinbase, one of the most active companies. The California-based exchange did not reduce commercial volumes to prevent it from actively acquiring startups. At the start of this year, there were also rumors about a potential acquisition of Coinbase by Facebook, although this seems to have been little more than speculation.
<img class = "size-medium wp-image-261169 alignright” title=”The triggers of the Crypto Bears market increase in M & A Activity” src=”https://news.bitcoin.com/wp-content/uploads/2018/12/Will-Coinbase-Hit-Its-2018-Target-of-1-300×300.jpg” alt=”Crypto Bear Market Trigger Increases in M & A Activity "width =" 300 "height =" 300 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/12/Will- Coinbase-Hit-Its- 2018-Target-of-1-300×300.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2018/12/Will-Coinbase-Hit-Its-2018-Target -of-1-150×150 .jpg 150w, https://news.bitcoin.com/wp-content/uploads/2018/12/Will-Coinbase-Hit-Its-2018-Target-of-1-768×768.jpg 768w , https: // news .bitcoin.com / wp-content / uploads / 2018/12 / Will-Coinbase-Hit-Its-2018-Target-of-1-1024×1024.jpg 1024w, https: //news.bitcoin. com / wp-content / uploads / 2018/12 / Will-Coinbase-Hit-Its-2018-Target-of-1-696×696.jpg 696w, https://news.bitcoin.com/wp-content/uploads/2018 / 12 / Will-Coinbase -Hit-Its-2018-Target-of-1-1392×1392.jpg 1392w, https://news.bitcoin.com/wp-content/uploads/2018/12/Will-Coinbase-Hit- Its-2018-Target- of-1-1068×1068.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2018/12/Will-Coinbase-Hit-Its-2018-Target-of-1 -420 x420.jpg 420w, https://news.bitcoin.com/wp-content/ upload / 2018/12 / Will-Coinbase-Hit-Its-2018-Target-of-1.jpg 1600w "sizes =" (maximum width : 300px) 100vw, 300px”/>
Coinbase acquired the decentralized ERC20 Paradex trading platform. L & # 39; Company has also acquired Earn.com for an estimated value of $ 100 million, a platform that allows users to receive cryptocurrency to reply to emails and complete tasks.
Another noteworthy acquisition involved the Goldman Sachs startup Circle, which acquired Poloniex for the exchange of cryptocurrencies.
Coinsource, a Texas-based cryptocurrency ATM operator, became the first ATM provider of digital assets to receive a Bitlicense in the state of New York.
The Japanese insurance group Sompo Holdings has acquired a 10 percent stake in Bitpesa, a foreign exchange and digital payment company in Kenya.
Trade.io acquired the British brokerage company Primus Capital Markets for an undeclared amount to offer Forex trading supported by BTC.
Consensys, the software company founded by the co-founder of Ethereum, Joseph Lubin, has acquired Planetary Resources, a startup looking for space.
The Japanese mega e-commerce and the internet company Rakuten Inc. have entered the cryptic space acquiring an existing cryptographic exchange to accelerate their navigation in the market of the Japanese cryptocurrencies.
Shapeshift has completed the acquisition of Bitfract, a software company that manages a service that allows users to switch from a cryptocurrency to many in an instant.
Ernst & Young, one of the leading global accounting firms, has acquired technological resources and related patents from Elevated Consciousness.
The research and development company Blockchain Nchain has announced the acquisition of a majority stake in the Handcash service of Bitcoin Cash-centric startup.
The Chinese company bitcoin BTCC was acquired by an investment fund based in Hong Kong.
It seems that the slowdown in the market that went through 2018 was the ideal time for big companies to get a good deal and secure an interest in the future of rapidly developing cryptographic space.
The merger and acquisition business will continue accelerate as we head towards 2019? Let us know in the comments section below.
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