CoinDesk Acquired By Digital Currency Group – What Does This Mean For The Industry?
I’m sure most people saw the recent news that CoinDesk were acquired by Digital Currency Group. Investing in over 50 bitcoin and blockchain companies, this is just another tool in their ever expanding chest.
“DCG’s resources and vision will enable the CoinDesk team to keep pace with those growing needs and continue delivering the top-quality journalism our readers have come to expect. In addition, DCG’s expertise in marketing, sales and product development will enable our team to expand its current offerings, including events and premium content.”
How does it affect the (bitcoin) industry?
On the surface this looks like positive news; a bitcoin business being acquired, a very large well known one at that. However, I’ve seen many comments around this news being rather negative, due to who has actually acquired them. DCG are heavily invested in many bitcoin companies (CoinCorner is not one of them), which gives them a heavily invested interest in these companies being successful. I personally however don’t see this as too much of an issue for the industry, if CoinDesk begin to write heavily weighted articles that the users don’t like then there are always alternative news outlets, so I can’t see CoinDesk moving this route.
Having said that, I do remember meeting Shakil Khan (founder of CoinDesk) briefly at the CoinSummit event in 2014. I heard him talk about how he was originally invested in BitPay, but had chosen not to invest in any bitcoin companies after founding CoinDesk due to the conflict of interest it would cause. This proved to be a very wise decision, allowing CoinDesk to continue it’s success and now acquisition.
As DCG are so heavily invested in other companies we can only hope they allow CoinDesk to continue to operate a reliable and consistent news outlet over the coming years.
All in all, this is a positive news story for the industry, which shows it is maturing, with one of the first high profile acquisitions.
How does it affect CoinCorner?
From the perspective of CoinCorner, we’re actually a little indifferent. Of course, we hope CoinDesk will continue to operate the trusted service they have provided over the years (a few mentions in a few articles every once in a while wouldn’t go a miss!) but overall, this should not have any direct affect on CoinCorner, so good luck to CoinDesk and Digital Currency Group with their next steps.
Disclaimer: The views and opinions expressed here represent those of the contributor, not necessarily those of CoinCorner.
What do you think about Digital Currency Group’s acquisition of CoinDesk? Share your thoughts in the comments below…