Gabriel Shapiro, founder of Metalex Labs, believes that Ripple's acquisition of Circle could lead to a "disaster" in the cryptocurrency world.
However, if Ripple succeeds in securing the deal, it is unlikely to pass antitrust standards.
Regulatory bodies review deals for antitrust concerns, meaning they will determine whether the deal would allow Ripple to exert excessive control over the ecosystem.
Shapiro stated, "It’s clear that making Ripple the largest issuer of assets on every blockchain would be disastrous and anti-competitive."
Shapiro noted that the company has previously used its influence to harm its competitors by spreading fear, uncertainty, and doubt (FUD). In 2022, for example, Chris Larsen, the founder of Ripple, collaborated with Greenpeace to launch a campaign against Bitcoin mining.
The analyst added that Circle should consider the Revlon principle, which states that a company must ensure the best deal for shareholders. This means that the issuer of USDC should take into account antitrust-related risks when entering into any potential deal.
Shapiro added, "In the event of a final agreement, we will be at the doorstep of the Department of Justice and the Federal Trade Commission, citing Ripple's track record of campaigns against Bitcoin and Ethereum...".
According to reports, Ripple is competing with trading giant Coinbase for Circle.
