Ripple Plans Expansion to Increase User Base
Representatives of Ripple, following the FTX cryptocurrency exchange, announced an imminent expansion. The company plans to acquire several startups to grow its user base.
As we wrote earlier, FTX is thinking about buying several companies in order to maintain and increase the user base in the current decline in the cryptocurrency market. This is a fairly common practice that gives good results.
For example, after the closure of the Tesla assembly plant in Shanghai, the position of the company, as well as the Elon Musk-backed DOGE cryptocurrency, did not fall, as Musk acquired a 9.2% stake in Twitter. According to the same scheme, FTX and Ripple are planning to strengthen their positions in the market.
The head of FTX.US said that the crypto exchange has free capital to acquire companies of interest to them. According to Brett Harrison, the company can buy startups in Dubai, Japan, Australia and anywhere else in the world. This will allow establishing mutually beneficial cooperation with local companies, obtaining licenses and other benefits from increasing functionality.
In turn, Brad Garlinghouse, who is the CEO of Ripple, noted that they have diverse interests and have free funds on their balance sheet to search for startups for the purpose of merger or acquisition. In his opinion, in the current cryptocurrency realities, expansion through mergers is a reasonable solution.
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