Bakkt Makes Major Moves in the Crypto Space
In a surprising yet strategic pivot, digital asset firm Bakkt has decided to part ways with 25 out of the 36 cryptocurrencies listed on its newly acquired trading platform, Apex Crypto. This decision, communicated on May 12, has sent ripples through the crypto community, igniting discussions about what this really means for the sector.
The Reason Behind the Cuts
According to a spokesperson, Bakkt’s decision to delist these tokens was merely part of their “regular coin listing review process.” While the details remain somewhat murky, the spokesperson emphasized that the firm is committed to prioritizing the interests of their clients and their customers. They stated:
“Our clients’ and their consumers’ best interests are our core commitment, and our review process ensures those interests are best served when we contemplate the most up-to-date regulatory guidance and the latest industry developments.”
A Look at the Delisted Tokens
The dropped tokens include some hefty names from the decentralized finance (DeFi) and nonfungible token (NFT) spaces. Here’s a quick glance at some of the notable casualties:
- Aave (AAVE)
- ApeCoin (APE)
- Avalanche (AVAX)
- Bancor Network Token (BNT)
- Basic Attention Token (BAT)
- Chainlink (LINK)
- Chiliz (CHZ)
- And many more…
It’s clear that the decision has far-reaching implications for these projects, not to mention for investors who might be holding these tokens.
Bakkt’s Acquisition Strategy
Back in November 2022, Bakkt made headlines with their acquisition of Apex Crypto, a strategic move aimed at enhancing their presence in the fintech landscape. This turnkey service has the capability of executing, clearing, and providing tax services for a whopping five million customers across 30 fintech clients. The deal was finalized in April for a cool $55 million in cash and $145 million in stock.
The Future Looks Different
Recent developments indicate a broader shift in Bakkt’s operational strategy. The firm shut down its retail-oriented app that previously offered an array of crypto services including trading and loyalty rewards. Instead, they are pivoting to focus on business-to-business solutions through service-as-a-sale and API offerings. This shift illustrates Bakkt’s aim to stabilize and streamline its offerings in a rapidly evolving market.
Market Reaction
It’s worth noting that Bakkt’s actions have led to some turbulence in the market, with its stock closing down 7% on May 12. This could suggest a growing unease among investors about the long-term viability of their recent strategic moves.
