Chain, a company that provides cloud services to developers so that they can create blockchain-based applications, will gain access to a variety of assets with the completion of the $100 million acquisition. These assets include MDT, the cash-back app RewardMe, and the financial data protocol MeFi. MDT is a decentralized distributed ledger technology.
This particular deal will stand out from others since it will entail a token conversion. Specifically, MDT will be exchanged for XCN, which is Chain’s native token. This serves as an example of how transactions involving digital assets may sometimes take strange and unexpected turns.
The firm’s very own mergers and acquisitions division coordinated the deal, along with the assistance of consultants from Tanner De Witt and Rooney Nimmo.
According to a statement on the company’s blog, “With this purchase, there will be a sunset of the Measurable Data Token (MDT),” which means that all MDTs would be burnt and replaced with XCN tokens. “Holders of MDT tokens will be eligible to reap the benefits of the swap, and it is anticipated that they will get a value of $0.08 per MDT token for the exchange.”
It is true that there is a precedent for this kind of merger; for example, the now-struggling company Voyager Digital acquired LGO Markets, which resulted in a merging between the tokens of the two companies.
Deepak Thapliyal, CEO of Chain, commented on the procedure, stating that it was “complex and involves a lot of cooperation from counter-parties.”
“In order to facilitate the swap for tokens that are held off-chain, we will need the aid of exchanges. Since we are both predominantly ERC20 tokens, the procedure for tokens that are stored on the chain will be a lot less difficult and will be accessible via a simple smart contract.
Already, Nexo, a bitcoin lender, and Vault, a competitor located in Singapore, have reached an agreement to be purchased. the company that Sam Bankman-Fried, FTX owns and operates.
The United States has also made public its desire to buy BlockFi. Changpeng Zhao, CEO of Binance, recently gave an interview to Yahoo Finance in which he indicated that the cryptocurrency exchange was contemplating between 50 and 100 investment and acquisition possibilities.