Bullish CEO Tom Farley: Crypto Industry Set for Consolidation
Bullish CEO Tom Farley said the cryptocurrency sector is poised for significant consolidation, with larger firms expected to acquire more projects and reduce market fragmentation in the coming months.
Speaking in a CNBC interview on Friday, Farley — who served as president of the New York Stock Exchange until 2018 — said the recent market downturn is likely to accelerate deals. Bitcoin (BTC) is down nearly 45% from its October all-time high of $126,100 and was trading at $69,405 at the time of publication, according to CoinMarketCap.
Farley: Consolidation in crypto was overdue
Farley said consolidation should have occurred earlier but was delayed by elevated valuations that sustained optimism among founders. He noted that some companies with flat revenue growth sought acquisition prices that reflected 2020-era valuations, which he believes are no longer realistic in the current environment.
He added that many firms will come to recognize they have standalone products rather than fully developed businesses, prompting them to pursue mergers and scale through integration.
Farley acknowledged that consolidation can have mixed effects across the industry. While underperforming projects may be absorbed by stronger companies, the process can also result in redundancies, workforce reductions, and operational disruption as entities combine or wind down.
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