By
Chimamanda U. Martha
April 24th, 2024
On January 16, Klaytn Foundation announced that it had partnered with Finschia Foundation for the potential merge of the two protocols to form a new mainnet.
Amid Bitcoin (BTC) ‘s recent downward trajectory post-ETF waves, altcoins such as Chiliz, Klaytn, and Blur are defying the trend, showcasing positive momentum after the approval of the ETF on January 10, 2024.
KLAY, the utility token of the layer 1 blockchain protocol, Klaytn, is the best performer among the trio. The digital asset, backed by the South Korean internet provider Kakao, have seen a 16% increase since January 16, 2024.
Altcoin Surge Fueled by Merger Speculation
The token is closely followed by Chiliz’s native crypto CHZ, which is used to acquire Fan tokens on the sports and entertainment platform Socios.com. The digital asset has surged to over 10% in the last 24 hours, trading at $0.1104 for the first time since May 2023.
However, at press time, CHZ has retracted its movement to $0.107 with a market capitalization of $954 million, according to CoinMarketCap data.
BLUR, the native token linked to the non-fungible token (NFT) marketplace and aggregator, also demonstrated a noteworthy gain of 15.3%. The recent surge of these altcoins could be attributed to the news of a possible merger between the blockchains.
On January 16, Klaytn Foundation, the non-profit organization overseeing the layer 1 blockchain protocol, announced that it had partnered with Finschia Foundation, the operator of the Finschia blockchain developed by LINE Tech Plus for the potential merge of the two protocols to form a new mainnet.
Both blockchains are expected to submit the proposal to their decentralized autonomous communities to decide on the move. Voting has been scheduled to take place from January 26 to February 2, 2024.
Chiliz CEO Signals Aggressive Mergers and Acquisitions
The proposal seeks to establish a cutting-edge industry leader by developing a technologically advanced blockchain supporting both EVM and CosmWasm. Additionally, it aims to build one of Asia’s most extensive ecosystems of decentralized applications (DApps) and users.
The two foundations plan to unify into a single organization, amalgamating their technology, services, and business networks, encompassing influential partners such as Kakao, LINE, and various other strategic collaborators.
Investors holding KLAY and Finschia’s FNSA token will have the opportunity to exchange their holdings for a newly minted coin upon the successful conclusion of the merger. The upcoming coin is anticipated to feature low inflation, incorporate a burning mechanism, and adhere to a zero reserve strategy.
This is exactly what I predicted 4 years ago and what I recently talked about. The benefits of merging chains to create bigger ecosystems around one token. Fun fact: we did approach Klaytn to merge last year. I believe @chiliz will look at some agressive M&A in 2024.… https://t.co/d8o2KilO5P
— Alexandre Dreyfus 🇹🇷 (@alex_dreyfus) January 16, 2024
Following the news of the potential merger, Chiliz’s CEO Alexandre Dreyfus hinted on X that the company will pursue aggressive mergers and acquisitions (M&A) this year. He also noted that the company approached Klaytn last year for a merger.