Bitstamp started its life seven years ago in a Slovenian garage with no more than €1000. Today it’s one of the most popular exchanges in Europe and has a daily trade volume of close to $20 million. However, Bitstamp’s solo journey has come to an end as Nejc Kodrič – Bitstamp CEO – announced in a blog post that Belgian investment firm NXMH had bought out a majority share. In a bid to reassure traders, Kodrič stated that the back-office team and leadership are set to remain the same for the meantime.
Merlak Planning Ahead
Bitstamp’s other co-founder – Damian Merlak – has recently set up a new crypto exchange focusing on ICO tokens. In an exclusive interview with BitStarz News, Merlak said that he had taken a step back from Bitstamp to relax and focus on new projects – could this have been an early sign that Bitstamp was preparing for a sale? Tokens hosted a wildly successful ICO back in 2017, selling out well before the deadline. Merlak’s new project looks to be every bit as successful – if not more successful – than Bitstamp was and is.
Exchanges Becoming Popular Acquisitions
There has recently been a spate of crypto exchanges being bought out or heavily invested in by investment firms. It highlights the attraction of the crypto markets and shows that large investment firms see a future for the crypto trading industry – after all, they won’t sink millions of dollars into something with no future.
Earlier in October, TD Ameritrade invested heavily in ErisX – a startup crypto exchange – in a bid to secure crypto trading for its clients. In the aftermath of the recent Zaif hacking, Fisco Digital Asset Group decided to buy the Zaif exchange at a discounted rate.
Bitstamp’s Time Has Come
Crypto markets have had a tough year, falling more than 70% from their all-time highs back in December 2017. Due to this, trade volumes have fallen significantly throughout the year as the bear market took hold. While there often appears to be a brief moment of respite, the market still remains largely negative. After a year of reduced trade volumes – and therefore a reduced amount of revenue – it makes sense that the CEO is finally checking out of Bitstamp and handing over control to someone else.
Bitstamp will likely remain the same given recent comments, so investors need not fear the future. After all, if you’re trading crypto properly then Bitstamp going poof overnight won’t impact you whatsoever. Always store your crypto in your personal crypto wallets, never store them on the exchange. Remember, not your keys, not your crypto – even when it comes to reliable crypto exchanges such as Bitstamp.
