Crypto companies are being sold at low prices, how can giants use the bear market to break the bottom of the layout?
Author: Blockchain Knight
Original title: Crypto companies are being frantically bought by giants, good or bad?
A bear market is often a golden period for giants to quietly do big things. The past month has seen at least 5 typical takeovers in the crypto industry.
Upbit operator Dunamu acquired 2% of shares from Samsung Securities; Robinhood bought WonderFi for $180 million to enter the Canadian crypto market; Figure spent $717 million to acquire Kiavi to enter on-chain real estate credit; asset management giant Franklin bought 250Digital to establish Franklin Crypto; and of course Messari, which was sold on big sale.
The most shocking thing is Blockworks's acquisition of Messari. Messari, which was valued at $300 million at the end of the 2022 bull market, is now being sold for over $10 million, with a discount of more than 90%.
Once overvalued crypto startups faced extreme pressure on survival and cash flow, media and data giants with steady cash flow like Blockworks could devour competitors and complete resource integration at extremely low costs.
In the face of increasingly stringent global regulations, giants are no longer choosing to break in, but are rapidly expanding by acquiring local licensed institutions that have been verified by regulations.
For example, WonderFi has two senior Canadian compliance platforms, and Robinhood directly bought tickets to enter the Canadian market and 300,000 ready-made users.
Similarly, Upbit is the best compliant exchange in South Korea. Traditional brokerage giants directly participate in shares, paving the way for the future opening of traditional finance and crypto assets.
Figure's acquisition is the most recent transaction, and it sends a signal that RWA has evolved from the storytelling phase of the past to a true 10-billion-level traditional asset chain.
Kiavi can bring in over $7 billion in transactions each year, and Figure directly integrates its residential loans into the on-chain capital market, which means that blockchain technology has been recognized for its value as the next generation of financial clearing and settlement.
Franklin Crypto clients, on the other hand, clearly point to pensions and sovereign wealth funds. This type of institutional capital manages trillions of dollars. In the past, it was impossible to touch crypto assets due to compliance and risk control, but now Wall Street directly customizes active management strategies for them.
For giants with strong strategic strength such as Samsung, Robinhood, and Franklin Templeton, a bear market is not scary; on the contrary, it is the best time to enter the market.
In a bull market, any mediocre project can call out a valuation of hundreds of millions of dollars; if the giants go in, they just take over the deal. In a bear market, the market bubble is squeezed out, and you can use 1/10 of the original price to buy the other party's technical architecture and compliance team that took years to establish.
Furthermore, the bull market is full of speculation, and when retail investors leave the market in a bear market, giants can also use this gap period to test various types of infrastructure.
Financial giants usually look at the macro-cycle of 3-5 years. With the implementation of the global crypto tax framework and compliance laws, the crypto industry is moving from the Wild West to institutionalization.
Once the global macroeconomic cycle changes and liquidity improves in the future, they will be able to reap most of the dividends, leaving latecomers far behind.
The current wave of acquisitions is a handover ceremony for the crypto industry's transition from a reckless era to compliant infrastructure. It's both cruel and real.
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