Connect with us

News

Cryptocurrencies Have “Too Many Tokens” and Mergers Are Coming to Consolidate DeFi and Memecoin

TokenTalk Staff

Published

on

Cryptocurrencies Have “Too Many Tokens” and Mergers Are Coming to Consolidate DeFi and Memecoin

Among the tokens that replicate complex financial instruments such as re-hyping in many “a dog in a hat” type projects, there are many tokens in the crypto ecosystem nowadays. Too many, according to some experts, who predict a wave of consolidation in the coming weeks and months.

With more than 13,000 tokens and speaking of $2.5 trillion market cap, the question becomes: why are there so many tokens when usage and adoption of the technology is not even close to where it should be?

According to industry observers, we enter mergers and acquisitions (M&A) that could help clean up sectors such as decentralized finance (DeFi) towards NFT projects and even memecoins.

Similar to the dot-com era of the late 1990s, strong interest from venture capital and the general public during the 2021 bull run has led to capital flowing into too many different crypto projects trying to solve similar problems, creating more tokens than necessary.

“Venture capital and excessive funding cycles during bull markets have led to the creation of a number of projects that often seek to solve similar challenges, just taking a slightly different approach,” said Julian Grigo, head of institutions and fintech at smart wallet infrastructure provider. Safe.

Taking inspiration from traditional industries such as the Internet, semiconductors and healthcare, mergers and acquisitions (M&A) can solve the cryptocurrency problem.

“There are already too many tokens and too many ‘projects’ for insufficient adoption and utility,” said Alex Dreyfus, CEO of the Chiliz network, which previously said it was looking for “some aggressive mergers and acquisitions” this ‘year. “Ultimately, consolidation will be key,” he added.

In fact, there is already a three-way merger that occurred last month as artificial intelligence (AI)-related crypto projects. Recover.aiSingularityNET and Ocean Protocol have said they are merging create a $7.4 billion token this will create an AI collective to fight big tech companies.

But this is just one recent example of large-scale mergers and acquisitions. Why aren’t there more?

The simplest answer might be that the industry is still very young and needs more time to reach a level where mergers can become more frequent. “The crypto M&A market is still in its infancy and, as such, there is often no template or regulation that can make transactions more difficult and complex,” said Safe’s Grigo.

Another challenge unique to cryptocurrencies is the nature of token markets. “Mergers and acquisitions are more difficult in the cryptocurrency sector, because a lot of money is invested in cryptocurrency trading and therefore, unlike traditional finance, where a ‘stock’ could die… cryptocurrencies never die. Everything is always an opportunity for exchange,” Dreyfus said.

One way this can potentially be managed is to conclude deals at the token level rather than the company level, meaning each team “can work on their own initiatives while supporting and growing the same ecosystem. This will create more decentralized ecosystems and have also a very powerful network.” effect,” he added.

But it’s not an easy task to accomplish, according to Shayne Higdon, co-founder and CEO of the HBAR Foundation, part of the Hedera ecosystem. “With cryptocurrencies, where the ethos is open source and decentralized, what are you actually buying or merging? Are you merging operations or just a token? The former is incredibly difficult to do when the business is centralized and will be infinitely more difficult in a future decentralized world,” he said.

“In cryptocurrencies it’s about growing the ecosystem and the resulting network effects. Having a common goal is critical to ensuring that communities vote in favor of the merger. These communities also hope, as a result of a merger, to be able to make more money in the long run,” Higdon said.

Mergers and acquisitions in the cryptocurrency industry may lead to “short-term token appreciation,” but could dilute value in the long run. “Without clear, non-redundant roles and responsibilities for the business, teams and staff, it will be difficult to achieve efficient economies of scale,” she added.

This is not to say that mergers and acquisitions fundamentals can’t work for cryptocurrencies.

The first rule of any M&A would be to ensure synergies between companies or projects and whether the new company can gain an advantage over competitors through the merger. “From an infrastructure perspective, we will increasingly see interoperability play a crucial role in aligning these ambitions and, similarly, I expect to see increased M&A activity between projects that share a common goal,” Grigo said by Safe.

The next step would be to understand tokenomics and the incentives for holders to vote for the deal, similar to how bankers would structure a merger or acquisition offer, whether friendly or hostile. “For projects where founders, investors or teams control the majority of the circulating supply, it is easy to negotiate the deal with a limited number of players,” said Oleg Fomenko, co-founder of the decentralized app Sweat Economy.

“Whereas for sufficiently decentralized projects it is easy to launch a ‘hostile takeover’ by offering tokens to all token holders to accumulate a sufficient amount to influence the governance of the protocol,” Fomenko added.

Other considerations include whether a merger can raise awareness of the project, reach a broader community, create a stronger team to achieve a common goal, Fomenko said, adding that the lack of a central means of providing a potential acquisition constitutes one of the biggest hurdles right now for the Web3 ecosystem. In decentralized systems, all token holders are often not known. There is no proxy agency that can contact the owners to then obtain the vote, as would happen with traditional companies.

In traditional finance, one of the biggest obstacles to closing a deal is regulatory uncertainties. TradFi is littered with high-profile merger and acquisition failures, including tech giant Qualcomm’s more than $40 billion acquisition of NXP Semiconductors, which collapsed after China blocked the deal. Another example was when Canada countered the $39 billion mining giant BHP Billiton hostile takeover of Potash Corp.

According to Sweat Economy’s Fomenko, cryptocurrencies’ relatively immature regulatory landscape could prove to be a distinct advantage for the industry. “Given Web3’s track record, it is likely to have the opposite effect and projects with large treasuries, active teams and communities will take advantage of the current regulatory climate and acquire other businesses before M&A regulation emerges in this field, ” he said.

Conversely, a better regulatory regime could incentivize larger mergers and acquisitions as it may encourage larger financial institutions to intervene as they will have a better idea of ​​how regulators will view a potential deal, according to Safe’s Grigo.

So, if dealmaking takes off in the digital asset space, what should investors be watching?

Naturally, projects that are unable to compete with larger competitors will seek to merge their operations to stay afloat. “The next wave of mergers and acquisitions is likely to occur in sectors where there is a high degree of fragmentation, such as Layer 1 chains that have not cracked the Top 10, DEXs, DeFi protocols, node operators, and perhaps even NFT projects “, said Aki Balogh, co-founder and CEO of DLC.Link

Meanwhile, Safe’s Grigo sees M&A taking place “at all levels”, as he doesn’t see any specific area that is immune to consolidation. He also expects traditional operators to pick up the “most innovative” Web3 projects.

However, projects that are only high quality will be able to raise significant amounts for potential mergers and acquisitions. “The big winners of this trend will likely become companies that have very sophisticated cross-chain analytics capabilities, as well as companies that can provide the holder of the specific token with the message about the potential offering,” according to Sweat’s Fomenko.

He said projects with more liquidity and no active teams could become targets of hostile takeovers. “I predict that this will likely happen in fields where the technologies are largely similar across different players: decentralized exchanges (DEXs), collateralized liquidity providers, and liquid staking protocols. However, any project with a token that is a governance could become a target.”

Fomenko believes this could become a dominant force in the memecoin industry.

“My prediction is that this will peak in the memecoin world, where I foresee the emergence of ‘ShibaPepes’ and ‘FlokiDoges’ in no time.”

Fuente

We are the editorial team of TokenTalk, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on TokenTalk, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Información básica sobre protección de datos Ver más

  • Responsable: Miguel Mamador.
  • Finalidad:  Moderar los comentarios.
  • Legitimación:  Por consentimiento del interesado.
  • Destinatarios y encargados de tratamiento:  No se ceden o comunican datos a terceros para prestar este servicio. El Titular ha contratado los servicios de alojamiento web a Banahosting que actúa como encargado de tratamiento.
  • Derechos: Acceder, rectificar y suprimir los datos.
  • Información Adicional: Puede consultar la información detallada en la Política de Privacidad.

News

Why Are Fetch and SingularityNET AI Tokens Up 30%? — TradingView News

TokenTalk Staff

Published

on

Meme Coin Price Drop Continues, Data Says - TradingView News

Artificial intelligence (AI)-based cryptocurrencies Fetch and SingularityNET both rallied more than 30% today, recovering after a three-month downtrend. What’s behind the AI ​​coins rally?

Why are FET and AGIX growing by more than 30%?

According to data from TradingView, the Fetch.ai (FET) token has rallied 37%, while the SingularityNET (AGIX) token is up more than 33% in the last 24 hours.Cointelegraph

The two AI-based cryptocurrencies began their price recovery on June 19. Both currencies have been trending downwards since the end of March.

Over the past three months, FET has fallen by more than 31%, while the price of the AGIX token has lost more than 36%.Cointelegraph

According to Vlad Balaban, co-founder of GT Protocol, a blockchain-based AI execution protocol, today’s price rally was catalyzed by the impending merger between SingulairtyNET, Fetch.ai, and Ocean Protocol. He has written:

“The increase of more than 30% is attributable to the announced merger with Ocean Protocol, aimed at forming the largest decentralized AI ecosystem. This strategic move has ignited investor enthusiasm, anticipating significant advancements and market leadership in AI technology.”

In a June 20th post, SingularityNET announced the official Artificial Superintelligence Alliance (ASI) token merge date of July 1st.

FET and AGIX stay up to date on AI and Nvidia developments: Nansen analyst

The artificial intelligence sector has attracted a lot of attention lately. Nvidia became the world’s most valuable publicly traded company on June 18, after the graphics processing and AI chip giant’s market capitalization rose to $3.34 trillion.

According to Edward Wilson, an analyst at Nansen.ai, developments around Nvidia and the artificial intelligence sector contributed to the rally in FET and AGIX tokens. He told Cointelegraph:

“AI as a sector is popular in both traditional markets and cryptocurrencies. It should come as no surprise that in the wake of Nvidia becoming the most valuable company in the world, AI tokens like NEAR, RNDR and others are becoming resuming.”

Nansen’s Wilson also noted that investor interest in AI remains high:

“Both of these tokens are up around 300% over the past year, compared to ETH which has seen just over 100% over the same period, demonstrating high market interest in this space.”

In the yearly chart, FET grew by more than 750% while the AGIX token grew by 192%.Cointelegraph

According to GT Protocol’s Balaban, part of the growing investor and institutional interest in AI is devoted to the emerging possibilities of artificial general intelligence (AGI):

“Companies are jumping into the AI ​​race, and those who emerge victorious will not only capture the largest market share, but will lead the world. This competition significantly increases investor and VC interest, as a race for AI promises substantial profits for those who make the right investment decisions for their portfolios.”

This article does not contain investment advice or recommendations. Every investing and trading move involves risk, and readers should conduct their own research before making a decision.

Fuente

Continue Reading

News

Top 3 Crypto Tokens to Take Advantage of Ethereum Spot ETFs and US Presidential Election Hype: Pepe (PEPE), Binance Coin (BNB) and ETFSWAP (ETFS)

TokenTalk Staff

Published

on

Top 3 Crypto Tokens to Take Advantage of Ethereum Spot ETFs and US Presidential Election Hype: Pepe (PEPE), Binance Coin (BNB) and ETFSWAP (ETFS)

Some projects in the cryptocurrency space, such as Pepe (PEPE), ETFSwap (ETFS) and Binance Coin (BNB), are in the pipeline to gain positive stimulus from the hype around the US presidential election. However, ETFSwap (ETFS) will benefit further from the upcoming trading of Spot Ethereum ETFs.

ETFSwap (ETFS) on Verge of Bull Run as Ethereum Spot ETFs Ready to Launch

ETFSwap (ETFS) offers access to real-world assets in tokenized form, redefining ETF trading. Users can leverage ETFSwap’s (ETFS) market-making experience to always achieve optimal liquidity and get advanced trading perpetuals up to 10x, including access to futures, access to advanced trading tools and market data in real time.

ETFSwap (ETFS) stands as a beacon at the forefront of a financial revolution with its seamless integration of traditional finance into the realm of DeFi. The platform supports tokenized assets with real-world securities such as Spot Ethereum ETFs purchased from traditional financial markets.

The possibility of Ethereum Spot ETFs starting trading from July 2nd will also significantly enrich the ETFSwap (ETFS) platform, allowing you to trade Ethereum Spot ETFs right from the start as soon as the platform launches.

ETFSwap (ETFS) is able to integrate blockchain technology with ETFs because it works with MiCa compliant and regulated investment banks to trade both securities and cryptocurrencies. The platform provides ETF Screener and ETF Tracker-AI tools designed with algorithms that can read, analyze and process large volume data and provide recommendations based on historical data, market sentiments, trends and pattern recognition.

Through its staking program, you can enjoy high returns from ETF staking and secure passive income when you purchase and stake native ETFS tokens that yield up to 87% in annual percentage rate (APR) yield . Additionally, all users of the ETFSwap (ETFS) platform have access to 24/7 market coverage and the freedom to open and close positions at any time, with the flexibility to manage risks and experience robust measures safety.

Additionally, ETFSwap (ETFS) is on the verge of launching a beta platform. This new platform will offer all cryptocurrency and ETF investors a simple and intuitive experience that will greatly improve buying, selling and trading ETFs with ease.

All these amazing features available on the ETFSwap (ETFS) platform are only accessible to those who hold ETFS tokens. Therefore, now is the right time to hurry and buy at the lowest possible price $0.01831as the price is expected to rise to $0.03846 in the next stage of presale.

Pepe (PEPE) is hoping for a big rally

Pepper (PEPPER) The frog-themed meme coin could see renewed interest among investors looking to double their cryptocurrency gains.

Pepe (PEPE) capitalizes on the popularity of other meme coins such as Shiba Inu (SHIB), Dogecoin (DOGE), and others. Cryptocurrency experts believe that with the increase in the number of Pepe (PEPE) coin holders, daily trading volume and a growing following on social media channels, there is still a lot of potential left in Pepe (PEPE) for another momentum bullish.

Binance Coin (BNB) could push up to $1000

Binance Coin (BNB)The fourth-ranked cryptocurrency by market capitalization is expected to rise by 70.08% and trade within a price range of $675 to $1,000 next year.

Binance coin (BNB) plays a vital role in some pre-sales in 2024, where it is accepted as the main currency. Its robustness and widespread acceptance determine the success of these pre-sales.

Users enjoy a number of benefits within the Binance platform for holding Binance coin (BNB), such as reduced trading fees, exclusive access to token sales, and the ability to transact on Binance ecosystem blockchains.

Conclusion on the 3 main crypto tokens set to exploit Ethereum spot ETFs and the US presidential election hype

While Pepe (PEPE) and Binance Coin (BNB) may see an increase in their prices, this is the case ETFSwap (ETFS) this will likely take advantage of the hype surrounding the US presidential election and, more significantly, the upcoming trading of Spot Ethereum ETFs as the platform is at the forefront of tokenizing ETFs and making them available to investors.

For more information on ETFS presale,

Visit the ETFSwap presale

Join the ETFSwap community

Disclosure: This is a sponsored press release. Please do your research before purchasing any cryptocurrency or investing in any project. Read the full information Here.

Fuente

Continue Reading

News

Meme Coin Merger: Presidential Tokens TRUMP and BODEN Collapse in Market Crash – Market Updates Bitcoin News

TokenTalk Staff

Published

on

Meme Coin Merger: Presidential Tokens TRUMP and BODEN Collapse in Market Crash - Market Updates Bitcoin News

https://news.google.com/./articles/CBMiaWh0dHBzOi8vbmV3cy5iaXRjb2luLmNvbS9tZW1lLWNvaW4tbWVsdGRvd24tcHJlc2lkZW50aWFsLXRva2Vucy10cnVtcC1hbmQtYm9kZW4tdHVtYmxlLWFta WQtbWFya2V0LXNsdW1wL9IBAA?hl=en-US&gl=US&ceid=US%3Aen

Fuente

Continue Reading

News

OpenAI co-founder announces his new company, AI tokens rally

TokenTalk Staff

Published

on

OpenAI co-founder announces his new company, AI tokens rally
  • Former OpenAI co-founder Ilya Sutskever announced Wednesday the launch of a new artificial intelligence research lab in the United States.
  • News of the launch of Safe Superintelligence Inc. catalyzed gains in AI-related crypto tokens.
  • The market capitalization of the AI ​​category increased by 12% in the last 24 hours.

Artificial intelligence (AI) crypto token prices rise on Thursday following news that OpenAI’s co-founder has started his own company. Ilya Sutskever, former chief scientist at OpenAI, announced the launch of a security-focused AI research lab in Palo Alto and Tel Aviv, US.

The news comes amid concerns regarding the security aspect of Artificial General Intelligence (AGI), under development at OpenAI.

According to data from CoinGecko, the market capitalization of AI tokens increased by 12% in the last 24 hours.

AI Tokens See Huge Price Gains

AI tokens such as Near Protocol (NEAR), Fetch.ai (FET), Internet Computer (ICP), Render (RNDR), Bittensor (TAO), The Graph (GRT), SingularityNET (AGIX) and Akash Network (AKT) extended gains in recent 24 hours, according to CoinGecko data.

AI tokens

AI tokens

The rally can largely be attributed to the announcement of the new company, Safe Superintelligence Inc. The team consists of former co-founder Ilya Sutskever, American entrepreneur Daniel Gross and Daniel Levy, a research assistant at the laboratory of computer scientist Stephano Ermon . Sutsekever served as chief AI scientist at OpenAI and focused on the “safety” aspect when developing AGI.

The announcement of the fundraising for Artificial intelligence projects from hedge funds and Venture Capital is another catalyst that will likely fuel gains in this token category. Pantera Capital announced on June 19 its decision to invest $200 million in artificial intelligence ventures, according to a report by DLNews.

Major crypto funds are raising $1 billion, of which AI will receive a 15 to 20% investment. This development is another market driver, which is likely to influence investor sentiment towards AI tokens.



Fuente

Continue Reading

Trending

Copyright © 2024 TOKENTALK.TOP. All rights reserved. This website provides educational content and highlights that investing involves risks. It is essential to conduct thorough research before investing and to be prepared to assume potential losses. Be sure to fully understand the risks involved before making investment decisions. Important: We do not provide financial or investment advice. All content is presented for educational purposes only.