The crypto landscape is shifting. Forget the moonshots and Lambo dreams – we’re starting a new phase of consolidation. Venture capital is drying up, user growth is slowing, and the regulatory heat is turning up. M&A, formerly an afterthought, is quickly becoming the new game in town. It’s not all just nature’s survival of the fittest. It’s an exciting time, a real opportunity to intentionally shape a more equitable future.

Can M&A Truly Serve Communities?

Let's be honest, the first image that pops into your head when you hear "M&A" probably isn't a group of smiling, empowered developers from underrepresented backgrounds. It’s probably better tailored suited corporate executives in business-casual attire, floating around a corporate boardroom table, scheming to increase shareholder value. And while that's undoubtedly part of the story, it doesn't have to be the whole story.

The reality is that M&A can be a positive force, especially in this moment. Imagine an upstart, scrappy innovative DeFi project. An innovative, passionate team of creatives and change-makers from various disciplines, backgrounds, and experiences are committed to providing microloans to under-represented communities. Great product, loyal following, but don’t have the resources to scale. An acquisition by a larger, more established player could provide the capital, infrastructure, and expertise needed to reach a wider audience, amplifying their impact and empowering the very communities they set out to serve.

The story told about crypto has largely been about financial speculation and technological complexity. This strategy leaves out so many people who stand to benefit most from this policy’s disruptive promise. Strategic M&A is a powerful opportunity to turn the tide. It elevates the important work of community-focused projects and helps them shine through with their creative ideas.

Whose Voices Are Being Amplified?

Here's the gut-wrenching reality: not all M&A deals are created equal. The key is intention. Are acquirers just being opportunistic and looking to pick off valuable technology or user bases? Or do they just not care about the communities that created these assets? Are they really serious about welcoming those communities into their ecosystems? It’s critical to ensure their voices are truly heard and their values truly respected.

We should be extremely skeptical of any acquisition that serves short term financial gains over longstanding commitments to the public. We've seen it before, in traditional tech and finance, and we can't afford to repeat those mistakes in crypto. When a project’s affected community is ignored, and its independent developers are muted, it represents a loss for this acquisition. Despite a hefty price tag, the mission is rendered meaningless when immediate returns become the focus.

  • Red flag: A sudden shift in product roadmap after the acquisition.
  • Red flag: Key community leaders leaving the project.
  • Red flag: Lack of transparency about the integration process.

Rather, we should be cheering like mad and working hard to promote acquisitions that tilt the scales toward inclusivity, diversity, and community governance. Thus, acquirers need to get out there and pursue projects from underrepresented people. They have to be ready to change their cultures and processes to let those perspectives flourish. Introduce decentralized governance practices in all of the projects you acquire. In doing so, residents and other community members will play an important role in determining the project’s priorities.

Social Impact and Ethical M&A

Overall, this M&A wave represents a special moment to focus crypto on bigger social concerns. We can use it to support projects that address real-world problems, such as financial inclusion, environmental sustainability, and access to education. Now, picture that same exchange buying a blockchain-based platform. This platform provides marketplace solutions for small holder farmers in developing countries to earn fair market value for their crops. Or a decentralized finance (DeFi) protocol buying out a venture that offers safe, clear voting infrastructures for native communities.

The potential is great, but achieving it will take a complete change of culture. Let’s stop thinking only in terms of monetary ROI. It’s past due to adopt a more holistic understanding of what it means to create value. Crypto’s real promise relies on more than technological innovation alone. It also needs to empower people and communities—here in the U.S. and across the world.

This isn't just about building a better financial system. It's about building a better world.

Require communities to be informed and have input about the expected community effects of any proposed acquisitions or mergers. Support projects that prioritize inclusivity and diversity. Hold acquirers accountable for their social impact. Continue to use your voice, your wallets, and your newfound influence to forge a future where crypto benefits all. Because the future isn't predetermined. In the meantime, it’s still being built, brick by brick, acquisition by acquisition, right now. It’s on us to make sure that it’s a future that’s inclusive, equitable, and really community-driven.

The other option is a highly-consolidated crypto space. It would be controlled by a handful of big players, replicating the very same inequities and injustices that plague today’s financial system. That’s a future none of us should have to accept.