Ripple Buying Circle Could Be Bad for Crypto, Says MetaLeX’s Shapiro
There’s big news in the crypto world – Ripple and Coinbase are both trying to buy Circle, the company behind the USDC stablecoin. The deal could cost up to $11 billion, and whoever wins could gain huge control over the stable-coin market.
Why it matters:
If Ripple wins, it would become one of the most powerful companies in crypto. But some people think this is dangerous.
Gabriel Shapiro, the founder of MetaLeX Labs, warned that if Ripple controls USDC, it would be “disastrous and anticompetitive.” He believes it would give Ripple too much power, and regulators like the Department of Justice (DoJ) and Federal Trade Commission (FTC) would likely get involved.
Shapiro also reminded everyone of Ripple’s past actions. For example, Ripple’s co-founder Chris Larsen worked with Greenpeace in 2022 to criticize Bitcoin mining. This shows how Ripple has tried to hurt its competitors before.
Ripple’s Offer & XRP Use:
Ripple first offered $4–5 billion to buy Circle, but Circle said no. Now, Ripple is back with a bigger offer, possibly using its own cryptocurrency XRP as part of the payment. Ripple holds around $94 billion in assets, including $40 billion worth of XRP. But it can’t easily sell all of it without legal approval.
Coinbase’s Position:
Coinbase also wants to buy Circle and has strong finances – with over $8.5 billion in cash and $2.8 billion in crypto. Some experts think Circle would prefer to sell to Coinbase because it would be easier with U.S. regulators.
What’s Next?
It’s still unclear who will win the deal – Ripple, Coinbase, or maybe even a surprise bidder like SBI Holdings (a major XRP supporter). But this deal could change the crypto world overnight.
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Shapiro warns that if Ripple wins, it might create serious problems for the crypto industry. Only time will tell how it all plays out.
