FTX and Ripple Labs are known as two of the leading firms in the cryptocurrency industry. Speaking to CNBC, they said that they are looking for other companies to acquire, as they want to drive growth in the industry, which this will help accomplish. This is an indication that some firms in the crypto space believe they are big enough and also have enough capital to spend on acquisitions. Last week, the president of FTX US, which is a crypto exchange, gave an interview. Brett Harrison said that when it comes to cash and capital, the company seems to be in a good position.
Therefore, they were checking out the market for potential companies they could acquire, or even merge with. According to Harrison, the company would be on the lookout for firms that could help it in expanding its user base, or in obtaining more regulatory licenses. The last acquisition that FTX had made for expanding its user base was back in 2020. It had taken over Blockfolio, which had helped the crypto exchange in getting more users. It had been reported earlier this month that the company was now on the lookout for brokerage companies, preferably startups, which could help it in delving deeper into the world of stock trading.
It had decided to purchase futures exchange LedgerX last year because it wanted to have access to the licenses that the company had from regulatory authorities in the United States. Harrison disclosed that they were making this move all over the world, including Dubai, Australia and Japan. He said that they were either seeking a partner in the form of local companies, or were ready to acquire as well, as long as it would provide them access to the licenses they want. Meanwhile, the chief executive of Ripple Labs, Brad Garlinghouse, stated that they also had a strong balance sheet.
The head of the cross-border payments firm predicted that the crypto space would see an increase in acquisitions and mergers. He said that both crypto and blockchainare already experiencing this, but it hasn’t become evident as yet. Garlinghouse that this was the future of the industry. He further disclosed that Ripple had reached that stage of growth that they were more likely to be a buyer instead of seller. 2021 saw a boom in the number of acquisitions and mergers happening in the crypto space. These transactions were valued at approximately $55 billion in the year, even though the value of same in 2020 had just been $1.1 billion.
This was primarily because of the rise in crypto prices that saw bitcoin reach a new all-time high back in November of the previous year. However, prices have gone down since then. The data shows that after reaching its all-time high of $68,990.90, Bitcoin has declined by almost 55%. The fact that crypto prices have gone down would mean the value of companies in the space has also suffered the same fate and it could motivate larger players to make acquisitions.