A proposed $4-5 billion Ripple takeover of Circle has sparked a major debate in the crypto world. One CEO calls it a textbook example of “fake it till you make it,” while another sees it as a smart business strategy.
A Controversial Takeover Attempt
Simon Dedic, CEO of Moonrock Capital, slammed Ripple’s attempt to buy Circle. He claims Ripple has spent a decade making empty promises and hype to inflate its XRP token’s value. Dedic alleges Ripple then cashed in on that inflated value to build a massive war chest, aiming to buy a successful company like Circle. He finds the whole thing “scammy,” despite acknowledging the impressive execution. Ripple and Circle both declined to comment publicly. Circle, preparing for an IPO in early April, reportedly rejected the offer, believing it undervalued the company.
Ripple’s Acquisition Spree
This isn’t Ripple’s first big acquisition. Last month, they bought Hidden Road for $1.25 billion. A Circle acquisition would be even bigger, uniting two of the largest non-algorithmic dollar-backed stablecoins (excluding Tether) under one roof.
The Role of “High-Agency Creators”
The attempted takeover also highlights a broader discussion about the role of founding teams in crypto projects. Hunter Horsley, CEO of Bitwise Asset Management, points to a spectrum of “creator agency”:
- No agency: Bitcoin (relies on community)
- Medium agency: Ethereum, etc. (some team involvement)
- High agency: Solana, Avalanche, Aptos, Sui, Ripple (strong team-led commercialization)
Horsley argues that projects with “high agency” – like Ripple – have the resources and drive to actively shape their success, meaning the “best product” doesn’t always win; sometimes the best marketing and strategy do. He sees Ripple’s actions as a prime example of this “high-agency” strategy.
Two Sides of the Same Coin
While Horsley views Ripple’s actions as strategic, Dedic sees it as opportunistic. Dedic criticizes Ripple for allegedly using XRP sales to fund acquisitions, essentially flipping assets for profit. At the time of writing, XRP was trading at $2.22.
