Ripple’s Potential Acquisition of Circle Sparks Concerns of "Crypto Apocalypse"
In a recent development, MetaLeX Labs founder Gabriel Shapiro has expressed concerns that Ripple’s acquisition of Circle could lead to a "crypto apocalypse." According to Shapiro, if Ripple secures the deal, it may not pass antitrust muster, as regulators scrutinise such deals for potential antitrust concerns. As reported by U.Today, Shapiro believes that allowing Ripple to acquire Circle would grant the company too much control over the ecosystem.
Shapiro has noted that Ripple has previously utilised its influence to harm its competitors by spreading fear, uncertainty, and doubt (FUD). In 2022, for instance, Ripple’s Chris Larsen teamed up with Greenpeace to launch a campaign against Bitcoin mining. This move has raised concerns about Ripple’s intentions and its potential impact on the cryptocurrency market. As U.Today previously reported, Shapiro stated that "making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive."
Regulators review deals for antitrust concerns, meaning that they will determine whether the deal could allow Ripple to gain too much control over the ecosystem. Shapiro has advised Circle to consider the Revlon doctrine, which posits that a company should secure the best deal for shareholders. This means that the USDC issuer should consider antitrust-related risks when making a potential deal. According to U.Today, Shapiro added that "if a definitive agreement is signed, we will be at the DoJ’s and FTC’s doorstep, citing Ripple’s history of campaigns against Bitcoin and Ethereum…".
The potential acquisition has sparked concerns about the impact on the cryptocurrency market. Ripple is reportedly competing with exchange giant Coinbase for Circle. As U.Today previously reported, Ripple’s $5 billion bid was rejected due to being too low. According to Fortune, Coinbase appears to have the upper hand, but Ripple also boasts a huge number of XRP tokens that allow it to be in a strong acquisitive position.
The implications of Ripple’s potential acquisition of Circle are far-reaching. If the deal goes through, it could grant Ripple significant control over the ecosystem, potentially stifling competition and innovation. As Shapiro noted, this could have disastrous consequences for the cryptocurrency market. U.Today has reported that the acquisition could lead to a "crypto apocalypse," highlighting the need for regulators to closely scrutinise the deal.
In conclusion, the potential acquisition of Circle by Ripple has raised significant concerns about the impact on the cryptocurrency market. As U.Today has reported, regulators must carefully consider the antitrust implications of the deal and ensure that it does not grant Ripple too much control over the ecosystem. With the cryptocurrency market continuing to evolve, it is essential that regulators and industry leaders work together to promote competition and innovation.
