Mergers and acquisitions between companies of cryptocurrencies exceed USD 4,000 million

Mergers and acquisitions (M&A) among companies in the ecosystem of cryptocurrencies and blockchains have been moved more than USD 4,000 million between 2013 and 2019. As reflected in a study published this November by the firm analysis TokenData.In the study, called Crypto-M&A: barbarians in the blockchain, you can see that with the exception of the present 2019, each year increased the total dollar fruit of alliances, purchases or acquisitions of one company to another in the environment of the cryptocurrencies.De indeed, the report shows how, particularly during the year 2018, there was a movement of funds exceeding USD 2,800 million in mergers and acquisitions between companies related to cryptocurrencies or blockchains. Only that figure represents about 70% of the total amount from 2013 to date.The dollar value of the mergers and acquisitions of 2018 almost five times the size of the accumulated of the previous five years: Image Token Data Research.In this respect, the document reflects that even with the steep decline, to about us $ 692 million in 2019, the figure in 2018, doubling the total achieved in 2017.For the signature, it is not coincidental that the mergers and acquisitions of companies related to the market of cryptocurrencies have been shot precisely between 2017, the year of the biggest cumshot bullish market to date, and 2018. In this regard, it considers that there is a high correlation between this activity and the market prices of cryptocurrencies.

The activity of mergers and acquisitions is a volatile and appears to be positively correlated with the prices of the cryptocurrencies and the feeling of the industry. The monthly activity peaked at the beginning of 2018 as the prices and the attention of the industry soared.TokenData, Crypto M&A: barbarians in the blockchain

Major agreements in the ecosystem of cryptocurrencies

To date, the largest acquisition of the ecosystem was that of the home exchange Poloniex by a part of Circle, a company that offers a platform for mobile payments. In the year 2017, Circle paid a total of USD 400, of the house of change. That agreement occurred in February of 2018.This year, however, both parties announced an impending separation. After this separation, Poloniex went on to be an “international company independent,” according to a blog post of Circle. Since then, Poloniex works thanks to an investment firm of chinese origin. Also Tron, a company of cryptocurrencies china headed by Justin Sun, has financed the activities of the exchange house.The other two acquisitions larger occurred equally in 2018. In one of them, the financial consortium BK Global became the majority shareholder of Bithumb, one of the main houses of change of South Korea. The amount of the purchase exceeded the us $ 350.000.000.Also for an amount which was around USD 350.000.000 was the purchase of the startup Chain by Lightyear, a company funded by the Stellar Development Foundation. The merger between the two companies resulted in the creation of Interstellar.House exchange-Coinbase stands out among companies with more agreements of this type since 2013, highlights the report of the TokenData. This happens to the margin of not having participated in the purchase or merger more costly to the ecosystem.The report also exposes that the total figures that have emerged from agreements between firms in the ecosystem of cryptocurrencies “are small in comparison with the assessment of the total network of the networks of cryptocurrencies”. The market of cryptocurrencies have a total value of more than USD 200 billion, as can be corroborate data from CoinMarketCap.To TokenData, it is not surprising that the negotiations between the companies of the industry are still low compared to the total market capitalization. In fact, the firm says, “this makes sense given the initial stage (in which it is located), this industry”.

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