But bitcoin’s dominance and influence on crypto markets have thrown their plans off-kilter. The original cryptocurrency has plunged to lows since the beginning of this year and dragged cryptocurrency markets along with it. The end result is that tokens listed on cryptocurrency exchanges have also crashed, allowing investors and acquiring companies to swoop in and purchase them at discounted prices.
Bajpai from JMP Securities said there was a mispricing of assets in crypto M&A. “Even for great businesses, the value of the token remains correlated to bitcoin, which can create an ideal opportunity for strategic acquirers,” he said.
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