Per a report from Fortune, crypto exchange Coinbase was exploring the acquisition of FTX Europe until very recently. The company aims to expand its foothold over the European market and increase its trading volume by offering crypto derivatives to more clients.
Coinbase Pounders Acquisition As Spot Crypto Trading Volume Crashes
The report claims that Coinbase has been trying to acquire FTX Europe on at least two occasions. The first was in late 2022, when the parent company, FTX, filed for bankruptcy protection in the US, and recently in September 2023.
Speaking about the possibility of buying FTX Europe, a spokesperson for the US crypto exchange told Fortune:
We’re always evaluating opportunities to strategically expand our business and meet with many teams around the world.
However, the US-based crypto exchange gave up on the plans FTX Europe is caught in the bankruptcy procedure. The parent company, now led by John Ray III, sued its European subsidiary to recover some assets.
The Europe-based crypto exchange has been attractive for many other companies in the nascent sector. The platform was the only one with a license to offer crypto derivatives to clients in the region following the grant of a Cypriot regulatory license.
In addition to Coinbase, Fortune indicates that Crypto.com pursued the acquisition of FTX Europe. FTX FDM, run by a Bahamian entity, also attempted to acquire the European exchange.
The report indicates that the US company has entirely abandoned acquiring FTX Europe. However, the potential window to close a deal will remain open until September 24th, the FTX Debtors told Fortune:
The FTX Debtors are committed to maximizing the value of FTX’s assets to drive customer recoveries. As such, the FTX Debtors are continuing to evaluate whether there are viable options for the sale of some or all of the assets of the FTX Europe business. This process remains ongoing.
Crypto Winter Impacts Crypto Exchange’s Business
As mentioned, the US crypto exchange’s potential acquisition of FTX Europe was aimed at increasing its trading volume. As the price of Bitcoin and other cryptocurrencies trends to the downside, fewer investors are interested in the nascent sector.
Consequently, Coinbase seeks to diversify and increase its presence in other regions. The company launched an international arm recently, and the acquisition of FTX Europe would have significantly expanded its operations.
As seen on the chart below, crypto trading volumes have declined since the start of 2023 after a slight uptick in Q1.
Cover image from Unsplash, chart from Tradingview
from Bitcoinist.com https://ift.tt/briVCca
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