Coinsquare Expands Portfolio In A Bid To Beat The Bearish Crypto Market
The bearish run of the cryptocurrency market seems unlikely to end soon. As a result, companies are working out ways to ensure that they do not sink in the downturn. Therefore, Coinsquare expands portfolio as one of the initial steps to try and beat the bears.
In a news release, Coinsquare announced that it acquired BlockEQ. BlockEQ is a cryptocurrency wallet that provides custody to tokens on the Stellar network. In particular, the firm mostly deals with XLM.
BlockEQ to operate autonomously
According to the news report, the deal is all cash and is worth C$12 million. Interestingly, this is testimony that Coinsquare has a lot of confidence in young blockchain firm.
In the same breath, Cole Diamond, CEO of Coinsquare said, “They are one of Canada's best tech teams, and the product they've built is immensely valuable.”
As such, Diamond believes that the relationship will greatly benefit both firms. “That combination in partnership with Coinsquare's technology and team means that we have the opportunity to build amazing things for the cryptocurrency community in Canada and far beyond,” Diamond added.
Interestingly, the acquisition leaves BlockEQ to operate autonomously. According to Satraj Bambra, CEO of BlockEQ, the firm will simply be operating “under the Coinsquare umbrella.” This is to say that the autonomy will help BlockEQ to operate as its own entity.
Crypto exchange in Japan
Further, Bambra revealed that the venture into blockchain was an inspiration from Coinsquare. As such, joining Coinsquare is simply a merging of interests for the two companies.
The BlockEQ acquisition is only an additional effort by Coinsquare to diversify its crypto portfolio. Other moves include a July partnership that sought to launch a crypto exchange in Japan. Particularly, the new exchange would be a joint effort between Coinsquare and DLTA 21 Blockchain Corp.
According to the news release, the exchange would rely on central management and would enable trading of various crypto pairs.
Further, DLTa21X is the official brand name for the new exchange. According to B. Matthew Hornor, Executive Chairman of DLTa21, DLTa21X would take advantage of increasing interest in Bitcoin trading.
“In addition to fast-growing interest in Japan to develop world-class decentralized applications on the blockchain (dApps), Japan reportedly accounts for the majority of global Bitcoin trading. DLTa21 is committed to offering Japan’s 3.5 million plus cryptocurrency exchange traders truly world-class solutions and security,” Hornor said.
Ultimately, coinbase hopes that the diversification will help it ride out the current storm in the crypto market.