The bad times for crypto companies may be over: here’s who’s won the market

The crypto market is wrapping up a great redistribution. These are the results of a prolonged crypto winter — most lost their money, and some, on the contrary, gained a lot. In this article, we discuss the two winners that are close to establishing their crypto monopolies, as well as speculate on the market reversal signal.

Two milestone deals

Right now, two huge acquisitions are being negotiated, the outcome of which will determine future monopolies in the crypto world. And it’s a really big deal:

• Binance.US has received approval from the U.S. regulator to take over major cryptocurrency lender Voyager Digital, which went bankrupt late last year. The deal will give Binance access to 3.5 million customers in the US market.
• Justin Sun (Tron Foundation) is ready to spend $1 billion of his own money to buy assets owned by Digital Currency Group (DCG), a subsidiary of troubled cryptocurrency lender Genesis. The owner of Genesis, DCG, is also the parent company of several well-known cryptocurrency firms, including such a monster as Grayscale.

From these two deals, both losers and winners are clearly visible. Binance and Tron have quietly gone through a long crypto winter; they are companies with strict risk management. They have patiently waited for their competitors to fall and are now trying to buy the leftovers at throwaway prices. It is not clear yet how successful this will be in reality, but the winners’ plans are truly grandiose.

Osprey published an open letter to DCG's Barry Silbert in an attempt to take over the management of Grayscale's #Bitcoin Trust (GBTC). #Tron's Justin Sun offers to lend DCG a hand. https://t.co/cAa6kTeOJy

— Bitcoin.com News (@BTCTN) January 14, 2023

Is this a signal for a market reversal?

Here are a few more observations about these super deals:

• It seems that Binance is in a better position. This exchange has already bloated to incredible proportions. Justin Sun’s Tron has already managed to buy quite a big exchange Huobi, which is now causing a lot of problems. But, as you can see, Justin Sun thinks that expansion can be continued and is ready to raise the stakes even more. Binance is more cautious and prudent in this regard.
• Note that in line with the Asianization trend we described earlier, two companies with roots in Asia are absorbing the rest of the bankrupt U.S. business. It will allow the “Asian tigers” to penetrate the U.S. market cheaply, using the huge customer base of the bankrupt companies.
• Usually, the surge of acquisitions and purchases occurs when the market turns, which coincides with the rise in the price of Bitcoin (and other crypto assets). The successful completion of these deals will undoubtedly stabilize the market by stopping the chain of bankruptcies launched by the collapse of Luna/Terra and FTX.