Those who are associated with cryptos or exchange of any other firms are now eager to monetize themselves and at the same time resort to scaling their operations. The move comes in the wake of the cryptocurrency market becoming a multi-billion dollar sector from the multi-million dollar. It is a different issue that several digital coin exchanges and other forms of crypto enterprises are finding themselves at a crossroads due to the challenging atmosphere.
Finance Magnates suggest that though the overall virtual asset market is undergoing tremendous challenges and sluggishness in the wake of regulatory issues, it is a fact that the segment has transformed itself into a world-class businesses. Before the Bull Run started, digital coin platforms came with pet projects promoted by a few people working from apartments. Now that the businesses have become established, a number of them are showing interest to monetize. How they want to do is the million-dollar question among investors.
There are four ways available for them to raise funds. One among them is seeking acquisition, and they could plan an initial public offering (IPO). Similarly, they could also opt to tokenize themselves through an initial coin offering (ICO) or any other means. The fourth attempt is to raise funds from private investors, which could enable the promoters to wait for more time to offload their stake. The interim period could see the market getting stabilized.
Recently, Smart Valor CEO (the Swiss-based company which seeks to enable the first stable coin backed by Swiss Franc), Olga Feldmeier, indicated that the most popular trend is the acquisition of cryptocurrency exchanges.
Incidentally, it's the first generation of digital coin exchanges that is currently its success.
The second generation could focus on not only tokenized assets but also on security tokens. One of the cryptocurrency exchanges that is engaged in an acquisition spree is Coinbase which acquired Cipher Browser, Earn.com, Distributed Systems, and Paradex Crypto. Similarly, Circle has acquired cryptocurrency exchange Poloniex. It is clear that strong enterprises are taking advantage and are keen on extending their role in the emerging sector.