Why distressed digital exchanges are ideal takeover targets

30w
3m read
Summary

Bitfinex is still running albeit with ongoing controversy, accused of being involved with money laundering in Poland.Nearly all of these distressed exchanges continue to operate and some have become takeover targets. The second-biggest hack was the exchange Bitfinex which resulted in an estimated 120,000 bitcoin (valued at $72 million at the time) being stolen. Coincheck, the cryptocurrency exchange that lost about $500 million of XEM (the NEM token) to hackers in January was acquired by Japanese financial service company Monex Group earlier this month. Poloniex, another breached exchange, was taken over by digital payments company Circle in February.The most notorious exchange breach was that of Mt Gox which was forced to shut down after having lost around 850,000 Bitcoins in February 2014. The recent pullbacks are the primer that is needed for financial firms to step up and take management control.”Eyal Oster, president of Momentum, a customer relationship blockchain project, says in an extremely volatile crypto market the exchanges, as market makers, are the ones who profit regardless of which direction the prices go.Exchanges redeeming their reputationAnother reason distressed exchanges appear as great takeover candidates after a hack is because of the reputational damage done to the incumbent management team.

Article Preview

Coincheck, the cryptocurrency exchange that lost about $500 million of XEM (the NEM token) to hackers in January was acquired by Japanese financial service company Monex Group earlier this month. Poloniex, another breached exchange, was taken over by digital payments company Circle in February.

The most notorious exchange breach was that of Mt Gox which was forced to shut down after having lost around 850,000 Bitcoins in February 2014. The second-biggest hack was the exchange Bitfinex which resulted in an estimated 120,000 bitcoin (valued at $72 million at the time) being stolen. Bitfinex is still running albeit with ongoing controversy, accused of being involved with money...

Read the full article @ Brave New Coin