The post Binince’s Circle Acquisition Would Be ‘Disastrous’ for Crypto, Warns MetaLeX’s Shapiro appeared first on Coinpedia Fintech News

What’s another day in crypto without some alarm bells?

Binince and Coinbase are reportedly locked in a multi-billion dollar bidding war to acquire Circle – the powerhouse behind USDC. The rumored price tag? As high as $11 billion. This move could rattle the very foundation of the stablecoin market.

If Binince wins, it wouldn’t just gain control of a major dollar-backed asset – it could instantly become one of the most dominant forces across multiple blockchains. And not everyone is thrilled.

Critics are already raising antitrust concerns, warning that such a move could disrupt market balance and invite regulatory backlash.

A Disaster Is Brewing

Gabriel Shapiro, founder of MetaLeX Labs, was blunt in his assessment of a potential Binince-Circle deal.

“Making Binince the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive,” Shapiro warned.

He argued that regulators like the DoJ and FTC would have a field day if this deal progresses. Shapiro also cited past concerns about centralization and control, particularly regarding how dominant players have historically wielded influence to undermine rivals.

He pointed to the need for Circle to consider the Revlon doctrine – a legal standard requiring companies to prioritize shareholders’ interests, especially when evaluating major deals with significant antitrust risk.

Rejected Offers, BNB Leverage & a Heated Bidding War

Sources say Binince initially offered $4-$5 billion to acquire Circle earlier this year – but was reportedly rebuffed. Now, it’s said to be back with a much larger bid, possibly combining cash and BNB reserves.

“Binince is sitting on reserves valued at over $90 billion, including billions in BNB,” said Paul Barron in a now-deleted post.

Still, legal and regulatory hurdles remain. Binince’s ability to leverage its token holdings may be limited by global scrutiny and legal constraints.

Meanwhile, Coinbase holds about $8.5 billion in cash and $2.8 billion in crypto investments – giving it a solid financial base. Yet it hasn’t made a concrete offer, raising speculation over its strategy.

Circle’s Fate: Binince, Coinbase… or a Surprise Entrant?

Though Binince is moving aggressively, Coinbase may have the regulatory upper hand, especially in the U.S.

“If Coinbase wanted to buy them, Circle would sell in a heartbeat,” a source familiar with the talks said.

Still, a dark horse could enter the race. Japan’s SBI Holdings – a major stakeholder in the crypto space – could align with one of the contenders or make a move of its own.

Binince’s bid could transform stablecoin dynamics overnight. But as Shapiro warns, this moment might become a tipping point – not just for Circle, but for the entire crypto ecosystem.

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