Crypto SPACs: What to Expect in the Year AheadIn 2021
A lot of companies that deal with cryptocurrency (like Bullish) joined forces with other companies in a way that made them more valuable. But in 2022, some of these deals didn't work out because of rules and problems with the economy. This has made it harder for these companies, especially those that are already publicly traded. It's not clear yet what will happen to these kinds of deals in 2023.
A company called Core Scientific, which helps people use computers to make money from cryptocurrency, has filed for bankruptcy. This is a legal process that happens when a company can't pay its debts. Core Scientific was worth a lot of money at first, but then it lost value and is now worth much less. This is because the market for cryptocurrency has not been doing well, and many other companies in this industry have also had problems and gone bankrupt. Some of these companies were worth a lot of money at one point, but now they are worth much less. A lot of the companies that went public (meaning they started selling shares to the public) through a process called SPAC in 2020 and 2021 are also in danger of running out of money. This is because they are not making as much money as they thought they would, and they are also having to pay back money they borrowed.
Recently, a lot of big deals involving companies that work with cryptocurrency have been canceled. This is mostly because the government agency that makes sure companies follow the rules (SEC) has been paying more attention to these kinds of deals. Some examples of deals that have been canceled include eToro, Circle, and Bullish. Other companies that have had to stop their deals earlier this year include Coincheck and Apfiny group. There are also several other deals involving cryptocurrency that were announced last year or early this year that might not happen, including Bitfufu, Bitdeer, Griid Infrastructure, and Coincheck. It has been hard for these companies because the government has been taking a long time to decide if they can do their deals, and also because the market for cryptocurrency has not been doing well. This has led to less money coming in and higher costs for these companies.
It will be difficult for companies that want to sell shares to the public (go public) through SPACs in 2023 if they work with cryptocurrency. This is because some of these companies might go bankrupt, the deals they make might not happen, and there will be more rules they have to follow. People who start these companies, make deals for them, and make sure they follow the rules will have to try very hard to make the industry better and make it seem more trustworthy.
A lot of companies that deal with cryptocurrency (like Bullish) joined forces with other companies in a way that made them more valuable. But in 2022, some of these deals didn't work out because of rules and problems with the economy. This has made it harder for these companies, especially those that are already publicly traded. It's not clear yet what will happen to these kinds of deals in 2023.
A company called Core Scientific, which helps people use computers to make money from cryptocurrency, has filed for bankruptcy. This is a legal process that happens when a company can't pay its debts. Core Scientific was worth a lot of money at first, but then it lost value and is now worth much less. This is because the market for cryptocurrency has not been doing well, and many other companies in this industry have also had problems and gone bankrupt. Some of these companies were worth a lot of money at one point, but now they are worth much less. A lot of the companies that went public (meaning they started selling shares to the public) through a process called SPAC in 2020 and 2021 are also in danger of running out of money. This is because they are not making as much money as they thought they would, and they are also having to pay back money they borrowed.
Recently, a lot of big deals involving companies that work with cryptocurrency have been canceled. This is mostly because the government agency that makes sure companies follow the rules (SEC) has been paying more attention to these kinds of deals. Some examples of deals that have been canceled include eToro, Circle, and Bullish. Other companies that have had to stop their deals earlier this year include Coincheck and Apfiny group. There are also several other deals involving cryptocurrency that were announced last year or early this year that might not happen, including Bitfufu, Bitdeer, Griid Infrastructure, and Coincheck. It has been hard for these companies because the government has been taking a long time to decide if they can do their deals, and also because the market for cryptocurrency has not been doing well. This has led to less money coming in and higher costs for these companies.
It will be difficult for companies that want to sell shares to the public (go public) through SPACs in 2023 if they work with cryptocurrency. This is because some of these companies might go bankrupt, the deals they make might not happen, and there will be more rules they have to follow. People who start these companies, make deals for them, and make sure they follow the rules will have to try very hard to make the industry better and make it seem more trustworthy.