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Ripple, FTX on the hunt for acquisition targets as market crashes

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CNBC heard from Ripple (top cryptocurrency company) and FTX (top crypto firm), that they are looking for acquisitions in order to help drive industry growth by purchasing other businesses.

The fact that many crypto-firms feel they are large and financially well-off enough to invest in acquisitions is indicative of their confidence.

In an interview, Brett Harrison, the president of cryptocurrency exchange FTX U.S. said that his company was in a “very good position in terms of capital and cash”. He will also “look around” the market to find potential merger or acquisition opportunities.

Harrison stated that FTX U.S. would look to acquire regulatory licenses or more users from companies. FTX U.S. acquired Blockfolio trading platform in 2020 which allowed it to get more users. This month was earlier. CNBC reportedFTX is seeking brokerage start-ups in order to grow its presence in stock trading.

FTX U.S. acquired LedgerX in 2012, a U.S. futures exchange with several licenses.

Harrison explained that Harrison is doing this globally in Japan, Australia, Dubai and other places. Harrison also mentioned that he has made acquisitions for licenses.

Brad Garlinghouse (CEO of Ripple cross-border payments firm) said that the company had “a very solid balance sheet” and predicted a rise for mergers or acquisitions within the crypto sector.

“I think there’ll be an uptick in M&A in the blockchain and crypto space. That hasn’t happened yet. It’s possible, however. “And I believe that as it unfolds, that we would consider such things,” Garlinghouse stated to CNBC last week during a conversation at the World Economic Forum in Davos.

He said, “We are now in a stage where we think that we are more likely to become the buyer than the… seller.”

In 2021, crypto mergers and acquisition activity exploded with a global total of $55 billion worth of transactions, up from $1.1 billion in 2020. according to PWC. This coincided with an explosion in crypto prices, which saw bitcoin reach an all-time high of $11,000 in November 2017.

Since then prices have fallen. BitcoinAccording to CoinDesk data, it is only 55% lower than its record high $68,990.90.

Some acquisitions may be more attractive to bigger players due to the possible drop in cryptocurrency price and potential valuations for companies involved in this industry.

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