LGO, a European-based crypto exchange will be merging with Voyager, which is a publicly traded broker. The merger will allow Voyager to enter the European markets, at least according to the CEO of Voyager. LGO will wrap up its institutional exchange business, and transfer all remaining assets to Voyager.
The CEO of Voyager, Steve Ehrlich, commented on the token merger,
“As part of the merger, the next version of the Voyager token will be minted which will allow holders of the VGX and LGO token holders to swap into the new token," according to the companies. "The holder ownership percentages will commensurate with the existing fully diluted market caps of the tokens. The new token will include decentralized finance features such as community governance.”
Why it matters: Crypto exchanges are growing in popularity and importance. Unlike the early days of crypto trading, registered exchanges that are compliant with regulations are able to operate at an advantage, and likely attract new clients. Many people who are entering the crypto space want to do business with an established exchange that has good security measures in place, and follows the regulations that are created to keep clients safe. As more people and institutions enter the crypto market, it is very likely that smaller exchanges that have regulatory approval will become the target of larger entities that can expand their geographic reach via acquisition.