If you have been around in crypto for long enough, you’ve probably heard people mention token or protocol M&A. After all, it’s logical; an industry that experiences such an extraordinary number of iconic divestitures (forks) should at least have a few mergers. While many (myself included) love pontificating on such a novel idea, as of today the progress in the field can be summed up in one word — pontification. Aside from a few insignificant M&A transactions ($COSS & $ARAX, $DOMO & $HEPTA), the space is pretty dead.
On the contrary, traditional, equity-based, M&A is alive and kicking. As many entrepreneurs struggle to find product-market fit and raise follow on capital, industry leaders such as Coinbase and Binance “come to the rescue.”
Being well-capitalized, profitable (at least Binance claims to be), and forward-thinking, both Coinbase and Binance are in a premier position to continue their exponential growth through M&A. Over the last few years, the two industry heavy-hitters evolved as M&A powerhouses:
- Coinbase started its acquisition spree in 2014 and, through its brief history, executed 12 acquisitions. In 2018, it even brought in a Corp. Dev heavy hitter Emilie Choi (ex LinkedIn) to run the M&A show and expand its investment activity through Coinbase Ventures (over 25 investments over the last 2 years)
