How Blockchains Will Become Targets for Hostile Takeovers
Why well-funded Crypto projects will Unseat Incumbents
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Mergers and acquisitions are things which leave traditional bankers frothing at the mouth. The salivate at the thought of all the money that can be made. The excitement of the chase. The opportunity to see their names in lights.
This is made all the more exciting when the company you want to acquire doesn’t welcome your advances. Instead of inviting the seduction, they batten down the hatches and mobilize their heavies to repel the unworthy and despised suitor. As such, the hostile takeover has become a pop culture myth.
Stories of successes on both sides of the line become War Stories which inform future battles. The precedent set in these dictates the way future battles are fought. The participants wear the Scars proudly for all to see.
M&A deals are a fascinating topic in and of themselves
But what about when it involves the blockchain?
Could it even happen, and if so how? A blockchain is obviously a public ledger detailing the historical transactions on a blockchain, how can this be acquired, muted or deleted? The fact that there is a historical trail how could this ever be muted or the value contained within be eroded?
What follows might be somewhat Sci-Fi in the assumptions it makes, but the basis of it is grounded within the typical happenstances of the current economic model. I think it is fair to assume that tricks and methodologies that are applicable now will be equally as effective in a new economic world. Ultimately, the physics of the markets are the same even if the transaction occurs over different exchange mediums.
How a Blockchain acquisition could occur
One Blockchain would incentivize the holders of coins in another blockchain to dump their coins in exchange for new coins in the acquiring blockchain at a discounted cost — a hostile takeover of sorts which boosts the value of the acquirers market share. This would effectively let companies acquire competing Blockchains users expanding the size of the blockchain by creating…