Crypto exchanges are gearing up for the next bull season, and an important development has taken place today. The majority stake of one of the most popular media organizations in the crypto industry has been acquired by the investment arm of a popular crypto exchange. So what does this move mean? Why was such a step taken?
The Block and Bitget
According to Bloomberg, Foresight Ventures, the venture capital firm of Bitget exchange, has acquired the majority stake from former CEO Michael McCaffrey in a deal that values the company at $70 million. As a result, The Block is now owned by Bitget exchange. The Singapore-based fund has made several significant acquisitions in the past. According to insiders, the total value of the deal is around $50 million.
FTX CEO was making even more extravagant moves in this regard. Even on the days when it was revealed that he was a scammer, his supporters in the mainstream media continued to be his biggest supporters. As the FUDs about the exchanges started to have devastating consequences, crypto companies began to strengthen their media partnerships. Last year, Binance exchange also invested $200 million in the 105-year-old media giant Forbes.
The Block and FTX Exchange
On December 9, 2022, the commercial relationship between The Block CEO Michael McCaffrey and FTX founder was exposed. Subsequently, it was announced that McCaffrey resigned from his CEO position and would leave the company. According to allegations made by Axios, McCaffrey started discussions about a loan to finance the acquisition with Sam Bankman-Fried in February 2021 and received three loans from Alameda.
When all this came to light, The Block executive Bobby Moran said the following:
“My initial reaction was anger, disappointment, and concern for all my colleagues. Everyone has worked incredibly hard over the years to be fair, accurate, and independent in their reporting. But this is very frustrating.”
After this stage, it remains to be seen whether the media organization’s policy will change. Major news platforms in the crypto industry have the power to significantly influence prices. They also have the potential to present risky companies differently. Lastly, the news of “ETF approval” reported by Cointelegraph (which was denied minutes later) had caused the price of Bitcoin to quickly surpass $30,000. This incident alone demonstrates the power of the media within the crypto industry.
