NEW YORK, Nov. 27, 2018 – “M&A of decentralized networks will serve as a critical catalyst for maximizing network effects across tokenized dApps and DAOs,” said G2H2 general partner Dean Patrick.
G2H2 Capital feels strongly about the potential for amicable post-ICO token M&A to revolutionize the cryptocurrency space. The initial framework proposal is outlined in detail here. The goal is to develop a market movement towards amicable merging of competing dApps in a systematic way that leads to optimal outcomes for all investor and developer groups involved.
Synergies in the crypto space have the potential to fair exceed traditional M&A synergy due to the exponential value creation of summing network peers following a token merger.
The nature of network effects leveraged by tokens introduce an inevitable consolidation of intra-vertical dApps. The degree to which the consolidation process can be accelerated is crucial for the rapid adoption and fulfillment of the innovation roadmap we have for the cryptocurrency space. Further research needs to be done to understand the technical implications (which vary greatly on a vertical by vertical basis) and is part of an effort to unlock the maximum economic value from enumerable revolutionary decentralized applications. Please contact Dean on LinkedIn to get involved in research and join the consortium of M&A advocates. His additional thoughts on all things crypto can be found here.