According to a prominent lawyer
Gabriel Shapiro, the founder of MetaLeX Labs, has expressed that Ripple's purchase of Circle could lead to a 'crypto apocalypse.'
However, if Ripple manages to finalize the agreement, it is likely that it will not pass antitrust evaluation.
Regulatory bodies are examining the agreements due to concerns that they may lead to monopolies, which means they will assess whether such a deal would allow Ripple to gain excessive control over the ecosystem.
“Turning Ripple into the primary issuer of assets on each blockchain would undoubtedly be devastating and harmful to competition,” stated Shapiro.
The lawyer has emphasized that the company has previously used its power to negatively impact its rivals by spreading fear, uncertainty, and doubt (FUD). In 2022, for example, Chris Larsen, co-founder of Ripple, collaborated with Greenpeace to launch a campaign against Bitcoin mining.
The analyst has also mentioned that Circle should consider the Revlon doctrine, which states that a company must ensure the best possible deal for its shareholders. This implies that the USDC issuer should assess antitrust risks when contemplating a possible deal.
“If a definitive agreement is formalized, we will face the DoJ and the FTC, citing the history of Ripple's campaigns against Bitcoin and Ethereum. . . ,” added Shapiro.
It is alleged that Ripple is competing with the exchange giant Coinbase for Circle.
As reported by U. Today, the $5 billion offer made by Ripple was previously rejected for being considered too low.
According to Fortune, it seems that Coinbase has the advantage in this contest, although Ripple has a considerable amount of XRP tokens that give it a strong position for the acquisition.
#USDC #SaylorBTCPurchase #BinanceAlphaAlert $USDC
