Crypto Industry Set For Big Shakeups, Massive Consolidation Expected: CEO

Big players in crypto appear ready to buy up smaller projects, and the shakeup could speed up now that prices have cooled. Related Reading: After Predicting XRP’s Drop, Analyst Says The Bottom May Be In According to Bullish CEO Tom Farley, the same consolidation that reshaped traditional exchanges is likely to play out across digital-asset firms, with acquisitions replacing a long run of stand-alone hopefuls. Farley says overblown price tags kept many weak businesses afloat longer than they should have, and that reality is finally catching up. Bigger Crypto Firms Eye Smaller Players Farley, who led the New York Stock Exchange (NYSE) until 2018, said during an interview on CNBC on Friday that many teams mistook products for businesses — a distinction he argues is costly. Companies with modest or stalled revenue were being talked about as if they were ready for blockbuster buyouts. That story, he added, ends when confidence in inflated valuations fades and buyers demand scale and repeatable income. Mergers will pick winners. Some teams will be swallowed; others will vanish. Valuations And VC Discipline Reports say venture capitalists have already tightened their grips. Eva Oberholzer, chief investment officer at Ajna Capital, said last September that VCs are far more selective now, shifting toward projects with steady revenue and clearer business models. That change in funding behavior has left many early-stage plays without the runway they once enjoyed. The money that once chased ideas now chases proof. Bitcoin Price Action Bitcoin’s swings are part of why buyers are cautious. Based on real-time data, BTC has been trading in the $68k-$70k lately, well off the October peak above $126,000. Daily moves of multiple thousands of dollars are common, and traders are jittery as broader markets wobble. Reports note that the recent volatility followed heavy losses across risk assets and a spike in hedging activity, which made short-term momentum hard to read. Related Reading: Breathe… XRP Is The ‘Oxygen’ Of The New Financial System, CEO Says What That Means For Teams And Workers When companies merge, duplication often follows. Engineers, product leads, and support staff may find roles cut as overlapping systems are folded together. Some projects will be integrated and given new life inside larger platforms; others will be wound down. For holders and small investors, the change can be abrupt. Buyers will prize clear revenue lines and strong custody, not dreams of a future payout. Featured image from AFP/Getty Images, chart from TradingView