Review of the top five blockchain project acquisitions in 2019

The competition among blockchain institutions is fierce, with industry leaders such as Coinbase, Binance, and ConsenSys making several significant acquisitions of blockchain projects this year.

These mainstream institutions have a vast amount of assets, enabling them to carry out high-profile acquisitions in the cryptocurrency space. By acquiring relevant companies, they gain cutting-edge technology and promising business plans.

As of October, there have been dozens of blockchain project acquisitions. Below are five significant acquisitions in 2019, not based on acquisition value, but on the impact they have on the industry as a whole.

ConsenSys

Last week, Ethereum blockchain service provider ConsenSys officially acquired Infura, Infura primarily provides Ethereum and IPFS node hosting services, granting access to developers. This acquisition allows ConsenSys to have full ownership of the company.

Reports indicate that Infura has faced issues with over-centralization. Thousands of blockchain developers use Infura, processing billions of requests daily, and this acquisition may invite more scrutiny.

CoinMarketCap

According to previous reports, CoinMarketCap made its first-ever acquisition in June, acquiring the crypto trading fund Hashtag Capital to expand its Data Accountability & Transparency Alliance (DATA) initiative, which aims to enhance transparency in the cryptocurrency field.

CoinMarketCap's accuracy has often been questioned. Wash trading, false trading volumes, and artificially inflated data may create a perception of industry manipulation. Therefore, Hashtag's acquisition is significant in improving transparency in the blockchain ecosystem.

Coinbase

In February this year, Coinbase acquired blockchain analytics company Neutrino. Neutrino focuses on investigating ransomware attacks, preventing theft, and identifying cybercriminals.

However, the acquisition was highly controversial as some members of Neutrino had previously provided malicious surveillance tools to authoritarian governments, leading to widespread media coverage and strong discontent within the crypto community, ultimately sparking the #DeleteCoinbase movement.

Coinbase eventually removed Neutrino's CEO and related members. This incident highlights that governance remains a crucial aspect in the crypto community.

Facebook

Over the past year, Facebook's Libra project has been a hot topic. Besides dominating headlines, Facebook also acquired Chainspace in February, a blockchain startup focusing on smart contract sharding, scalability, and transaction throughput.

The acquisition was made through a "hiring" activity where Facebook onboarded Chainspace's team, who abandoned their initial project. Despite Chainspace's code being open source, there have been no updates since February.

Binance

In September, Binance acquired the cryptocurrency derivatives trading platform JEX. Initially, Binance announced plans to offer derivatives trading using the JEX platform and quickly launched both Binance Futures and JEX futures platforms in mid-September.

Binance's interest in futures signifies its competition with mainstream exchanges like Bakkt, BitMEX, and Kraken. These exchanges will provide a clearer picture reflecting the actual demand for cryptocurrency futures.

The Beginning of Crypto Project Acquisitions?

In addition to the notable acquisitions mentioned above, Bakkt also acquired the cryptocurrency custody service provider DACC in April. Recently, Ripple made a move into Iceland by acquiring a trading company named Algrim.

Even if the acquisition prices are not high, they can be highly beneficial as they allow mainstream institutions to bring in new talent and technology, as well as providing exposure and financial resources to startups. Of course, acquisitions also help solidify the institutions' strength.

Related Readings

• Dubai Economy Department Launches Blockchain-based Business Registration System
• AEternity to Conduct Blockchain Voting Trial Project in Uruguay

Join now to get the most comprehensive fintech information, blockchain insights, and industry examples!