The current situation in the crypto market seems to be causing turmoil for different companies in the space. The steep decline in tokens, NFT, and cryptocurrency market prices seems to have put many cryptocurrency firms and companies in debt.
Despite the bearish eruption in the crypto space, big companies are buying out crumbling platforms at any opportunity. Cryptocurrency companies like FTX and Ripple have been at the forefront of acquiring other struggling companies in the industry and space.
The two high-profile companies announced their intentions to acquire more companies to trigger rapid growth. Forecasts from crypto experts have speculated a high rate of mergers and acquisitions in the crypto industry.
FTX Set To Acquire Bithumb Cryptocurrency Exchange Platform
According to Whale Coin Talk, one of the leading South Korean crypto exchanges, Bithumb, is about to be acquired by FTX. The news started as a rumor; however, the acquisition appeared to be coming to reality.
Bithumb, a crypto exchange platform launched in 2014, seems to be feeling the heat of the market. The platform has garnered over $700 million trading in 24 hours, with over 8 million users.
Bithumb’s founder, Vidente, confirmed the rumors that the exchange platforms have been talking with FTX regarding a possible acquisition. After the announcement by Vidente, rumors and speculation from crypto were confirmed.
There were also revelations that the companies are in the final stage of concluding the acquisition agreement. However, the crypto exchange platform FTX has failed to comment on the issue.
Details of the proposed merger/acquisition are still sketchy as Bithumb is still looking at possible odds with the selling out. The sell-out may be a complete acquisition of the platform, potential merger, or co-management by both exchanges.
Bithumb stakeholders are yet to make their decision known. A major stakeholder in the company, Seer, revealed that their next move is yet to be determined, either; a joint merger or a complete acquisition.
FTX Set To Acquire and Merge With More Struggling Companies
Since the kickstart of the loss in the markets, the cryptocurrency platform FTX has moved to acquire struggling companies. For the past few months, the company has been sending acquisition or merger proposals to crumbling cryptocurrency companies.
Early this year, Liquid Group, an exchange platform in Japan, was acquired by FTX. The firm also acquired crypto lender platform, BlockFi for over $200 million in June after a $400 million credit facility was given out.
FTX Founder/CEO Sam Bank-Friedman stated that the exchange company intends to broaden its reach to the Asian region. All indications in the area kept pointing to the acquisition of Bithumb.
The United States FTX President, Brett Harrison, revealed in June that the exchange platform is ready to buy more companies. The acquisition and merger are to get more clients and customers and expand across borders.
Bithumb acquisition move was announced days after FTX proposed a joint merger plan with Voyagers Capital. Although, the bankrupt banking company is yet to reply to the proposal.
Blockchain network company Ripple is competing with FTX regarding platform acquisitions. Both firms are buying out struggling crypto companies at a very high rate.
Ripple’s founder and CEO also revealed its acquisition and merger move. The CEO, Brad Garlinghouse, stated that the blockchain platform had prepared a high balance sheet for mergers and acquisitions in the crypto industry.