FalconX crypto trading platform has announced plans to buy derivatives platform Arbelos Markets. The details of the acquisition of Arbelos, founded in 2023, remain ongoing with the company’s valuation still a tough subject.
According to details, FalconX will part with cash and some of its stocks in exchange for acquiring the derivatives platform. Details from anonymous sources familiar with the inner workings show that an announcement could be released in the coming days.
Arbelos finalized a funding round in May 2024, where it raised $28 million. The funding round was led by Dragonfly Capital, with FalconX and other firms like Deribit, and Paxos also in attendance. This isn’t the first rodeo for Arbelos founders Joshua Lim and Shiliang Tang. Lim has taken up a desk job at Galaxy Capital and Genesis Global Trading. Tang, on the other hand, was Chief Investment Officer at LedgerPrime, which has now rebranded to MNNC Group.
Other crypto companies are also making acquisitions, with payment giant Stripe announcing the acquisition of Bridge for $1.1 billion. One of Bridge’s investors Sequoia Capital saw its value hit five-fold after the deal.
Trump’s election victory ignites market frenzy
The acquisitions are in line with the pro-crypto promises made by the Trump administration. The President-elect has been open about making the country the crypto headquarters of the world. He has also been making moves toward the dream, kicking out previous regulators and installing those who are familiar with the market.
His return to the White House has spurred a bit of optimism among investors and CEOs. It is not a surprise, considering his reelection was backed with $135 million in crypto funds. A look at the market post-election shows that things are shaping up to a boom for the sector. Assets started to rise in price even before he was confirmed, with experts noting that it was a sign of better things to come.
However, despite the increased optimism, there are still challenges in the market. For instance, there is the issue of stock transactions because most crypto firms belong to private entities. Another headache is valuation, with most firms already losing the valuation that was sky-high in 2022. Deals will have to go through hiccups, with most firms not getting the figures they think they’re worth.
Meanwhile, other regions like Singapore, the UAE, and the Eurozone are not waiting on the United States to get its crypto policies right. They have already carved out favorable regulations in the industry in their respective countries. Though Europe’s Markets in Crypto-Assets (MiCA) rule debuted on December 31, it is not getting the hype that trailed its announcement.