Ripple’s Potential Deal Faces Scrutiny

Gabriel Shapiro, the founder of Metalex Labs, expressed his views on the implications of Ripple’s upcoming deal, suggesting it may lead to something he terms a “cryptopoena.” He indicated that if Ripple secures the agreement, navigating antitrust issues could become quite tricky.

Regulators are tasked with reviewing transactions for any antitrust implications. Therefore, the outcome of this deal could determine whether Ripple is gaining excessive influence over the cryptocurrency ecosystem.

“Making Ripple the largest asset issuer on every blockchain would be harmful and anti-competitive,” Shapiro mentioned, highlighting concerns about market control.

Shapiro also pointed out Ripple’s past actions, stating that the company has previously leveraged its position to undermine competitors by creating fear, uncertainty, and doubt (often referred to as FUD). For instance, in 2022, Chris Larsen from Ripple collaborated with Greenpeace to campaign against Bitcoin mining.

Analysts suggest that Circle, a significant player, needs to be cautious about antitrust risks as they consider potential transactions. The implications of the Revlon Doctrine may come into play here.

“If a significant contract is finalized, we’ll likely be approaching the DOJ and FTC, referencing Ripple’s previous campaigns against Bitcoin and Ethereum,” Shapiro added.

Currently, Ripple finds itself in competition with Circle’s trading platform Coinbase. Reports indicate that Ripple’s previous $5 billion bid was turned down as it was deemed insufficient.

According to Fortune, it seems as though Coinbase may hold a strategic advantage in this scenario, yet Ripple’s substantial holdings of XRP tokens grant it a noteworthy position in the acquisition landscape.