Huge Acquisitions in web3 history

In the fast-paced and disruptive world of cryptocurrencies and blockchain technology, paradigm shifts occur more rapidly than ever.

The novel synergies emerging between cutting-edge technologies and the traditional finance ecosystem are prompting legacy institutions and digital ventures alike to re-examine their strategies and seek new opportunities to prosper in this rapidly evolving environment.

One way to gain access to new innovations, technologies, and technical expertise is through acquisitions, partnerships or investments in promising projects and companies. In this article, we delve into the most notable acquisitions of recent times in the crypto and web3 space, exploring the reasons behind these deals, and shedding light on their significance for the whole industry.

Crypto Exchange Frenzy: The Battle for Retail Customers and Institutional Relationships

Two of the largest and most active players in the crypto acquisition scene are Binance and Coinbase, which have been competing for dominance in the global cryptocurrency exchange landscape.

Binance: The Aggressive Expansionist

With its aggressive expansion and adoption strategies, Binance is undoubtedly leading the acquisition game when compared to other players in the web3 and cryptocurrency ecosystem. According to some estimates, Binance has completed more than a dozen acquisitions since its inception in 2017, making it one of the most acquisitive companies in the industry.

• CoinMarketCap : Binance acquired CoinMarketCap, the most well-known crypto price aggregator and analytics platform, in April 2020. The estimated value of the deal was $400 million, one of the largest acquisitions in the crypto space to date. Through this acquisition, Binance gained access to a wide array of tools and data, which they have utilized to enhance their services and appeal to a broader audience.
• Swipe : In July 2020, Binance acquired Swipe, a multi-currency digital wallet and crypto debit card platform. The acquisition expanded Binance’s services by giving it more direct access to the payments and debit card spaces, allowing Binance to offer a comprehensive and user-friendly fiat gateway.
• TokenClub : In December 2020, Binance China Blockchain Research Institute acquired TokenClub, a Shanghai-based cryptocurrency token trading and information platform, to further bolster its presence in the Chinese market.

Coinbase: Legacy Player Eyeing for Expansion and Diversification

Coinbase, the leading US-based cryptocurrency exchange and wallet service provider, has been working to broaden its offerings and cement its position as a premier crypto platform through a series of strategic acquisitions.

• Tagomi : In June 2020, Coinbase acquired Tagomi, a cryptocurrency prime brokerage platform, for an estimated $75 – $100 million. This deal allowed Coinbase to cater to a larger pool of institutional investors, as Tagomi specialized in advanced services such as order-routing and algorithmic execution strategies.
• Skew : In May 2021, Coinbase acquired the London-based analytics platform Skew. Skew specializes in data, trading, and analytics on cryptocurrency derivatives, helping traders to manage their portfolios and navigate the fast-paced world of crypto-assets.
• Zabo : In March 2021, Coinbase announced the acquisition of Zabo, a cryptocurrency portfolio aggregation service. This move signaled Coinbase’s intention to expand beyond its core exchange services and provide users with greater assistance in tracking their portfolios and investments across multiple platforms.
• Bison Trails : Bison Trails, a blockchain platform offering infrastructure-as-a-service (IaaS), was acquired by Coinbase in January 2021. This move enabled Coinbase to offer a comprehensive suite of services to its customers, from staking and node operations to network management and other industry-specific developer tools.

De-Fi Consolidation: The Race for Future-Proof Solutions and Cutting-Edge Technologies

De-Fi or Decentralized Finance has witnessed exponential growth in the last couple of years. Innovative projects, bold visions, and sudden success have attracted a swarm of interested parties, ranging from venture capitalists to industry incumbents.

Yearn Finance: The Hungry Innovator

Yearn Finance, the brainchild of Andre Cronje, a De-Fi masterpiece, has been quite active in the acquisition space. To expand its ecosystem and establish a strong position in the burgeoning De-Fi landscape, they’ve secured some interesting tie-ups.

• SushiSwap : Yearn Finance announced collaboration with SushiSwap, a decentralized exchange (DEX), in November 2020. By partnering with SushiSwap, Yearn Finance sought to gain a competitive edge in the De-Fi ecosystem by combining its yield farming capabilities with SushiSwap’s innovative token swapping platform.
• Cover Protocol : Yearn Finance also joined forces with Cover Protocol in November 2020. Cover Protocol is a decentralized insurance marketplace that provides coverage against possible defects and exploits in decentralized finance applications. This strategic partnership enabled both parties to provide users with coverage for various De-Fi protocols and enhance trust in the Yearn ecosystem.
• Akropolis : Lastly, in December 2020, Yearn Finance announced its merger with Akropolis, a De-Fi project focused on undercollateralized loans and alternative savings products. This merger aimed to benefit from Akropolis’ institutional contacts and pensions-focused products, thereby broadening Yearn Finance’s user base and product offerings.

ShapeShift and Thorchain: The Emblem of a Collaborative Future

ShapeShift, a leading non-custodial cryptocurrency platform, announced its total integration of Thorchain, a cross-chain liquidity protocol, in April 2021. This attentive acquisition allowed ShapeShift to integrate native Bitcoin trading into its platform, creating a seamless user experience for trading multiple cryptocurrencies.

NFTs and Gaming: The New Frontiers of Digital Collectibles and Virtual Realms

The artistic passion fueling the world of NFTs and blockchain gaming continues to surge, with some groundbreaking acquisitions paving the way for innovation in these spaces.

• Dapper Labs and Top Shot : In February 2021, NBA Top Shot entered a partnership with Dapper Labs, the creators of CryptoKitties. This collaboration allowed fans to collect, trade, and own officially licensed NBA collectible highlights.
• Animoca Brands and Quidd : In May 2021, Animoca Brands, a leading digital entertainment, and blockchain gaming company, acquired Quidd, a digital collectibles platform. This strategic acquisition aimed to develop new digital products, drive user engagement, and enhance intellectual property within the NFT space.

Conclusion

As the crypto and web3 space continues to evolve, acquisitions and partnerships will remain a crucial driving force for innovation, growth, and strategic positioning. By identifying promising projects and tapping into their potential, industry leaders can ride the wave of change and ensure a brighter, digitized future for the entire fintech ecosystem.

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