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Ripple vs. Coinbase: High-Stakes Bid for Circle Sparks Fears of Crypto Turmoil
Another day, another seismic shift in crypto? This time, the spotlight is on Ripple and Coinbase, locked in a fierce battle to acquire Circle, the issuer of the USDC stablecoin, in a deal potentially worth $11 billion. The outcome could redefine the stablecoin landscape—but not everyone is cheering.
Dominance vs. Danger: The Antitrust Alarm
MetaLeX Labs founder Gabriel Shapiro has sounded the alarm, calling a Ripple takeover of Circle “disastrous and anticompetitive.” His concern? Granting Ripple control over USDC—the second-largest stablecoin—could centralize power across multiple blockchains, stifling competition. Shapiro argues regulators would pounce, citing Ripple’s history of undermining rivals like Bitcoin and Ethereum, including co-founder Chris Larsen’s 2022 collaboration with Greenpeace to criticize Bitcoin’s energy use. He also warns Circle’s board to heed the *Revlon doctrine*, a legal mandate to prioritize shareholder interests, including antitrust risks.
Bidding War Heats Up: Cash, Crypto, and Legal Hurdles
Ripple initially bid $4–5 billion for Circle earlier this year but was rejected. Now, rumors suggest it’s returning with a richer offer, potentially leveraging its estimated $40 billion XRP reserves (valuing total holdings near $94 billion). However, liquidating XRP requires court approval—a lingering hurdle from its SEC lawsuit. Meanwhile, Coinbase, with $8.5 billion in cash and $2.8 billion in crypto assets, remains oddly quiet. Some speculate regulatory favor could tilt the deal toward Coinbase, given its longstanding partnership with Circle and existing USDC ties.
Wildcards and What-Ifs
Could a dark horse emerge? Japan’s SBI Holdings, a major XRP stakeholder, might enter the fray. Yet Shapiro’s warnings loom large: If Ripple succeeds, the crypto ecosystem could face unprecedented consolidation, triggering regulatory battles and market instability. Conversely, a Coinbase victory might
