In a continuing effort to integrate licensed crypto trading platforms, DeFi platform WonderFi on Friday announced its latest integration through the value-added acquisition of one of Canada’s leading crypto-asset trading platforms and the first licensed pure-play crypto broker.
Following the March 24 acquisition of BitBuy, Canada’s first licensed crypto marketplace, WonderFi Technologies announced today that it is acquiring Coinberry Limited, opening its doors to more than 750,000 users in Canada.
Backed by Shark Tank’s Kevin O’Leary, WonderFi is an end-to-end consumer platform for those seeking exposure to the cryptocurrency and emerging DeFi ecosystem. It helps serve as a bridge to the next generation of finance, breaking down barriers that exist in traditional finance — and helping the masses use crypto and DeFi.
Launched in 2017, Coinberry has become one of Canada’s leading crypto exchanges, with over $1 billion in transactions to date. The platform currently has 29 top crypto trading pairs and services, more than 220,000 users, and over $13 million in revenue for the 12 months ended December 31.
Under the terms of the accretive acquisition, the transaction is valued at $38.6 million.
An “accretive acquisition” is a program that increases the acquirer’s earnings per share, traditionally by offering the acquiree a price lower than the acquiree’s contribution to the combined entity’s earnings.
“We share with WonderFi the belief that seamless integration and unified access to digital assets is the future and where we want to be positioned,” said Andrei Poliakov, CEO and founder of Coinberry. “We chose this route for Coinberry because we felt it was the best option for our loyal Canadian users, and this merger will allow users to get the best prices, best products and best service. “
WonderFi CEO Ben Samaroo also weighed in, saying the recent acquisition “is a [WonderFi’s] Expand to global markets in 2022. Our user base, revenue and talent pool continue to grow as we continue to integrate leading permissioned encryption platforms. “
Canadian Attraction; BitBuy Acquisition
Last month, WonderFi completed its $162 million acquisition of BitBuy’s parent company First Ledger Corp, giving it full ownership and control of Canada’s crypto market. The deal gives WonderFi access to the Toronto-based company’s more than 375,000 users.
According to WonderFi, BitBuy has transacted more than $4.4 billion since 2016, and the company made more than $31 million in revenue last year.
But what makes Canada so attractive to the DeFi and crypto community?
WonderFi CEO and founder Ben Samaroo and BitBuy CEO Michael Arbus sit down to discuss Zoom in an exclusive interview with Be[In]Crypto, revealing the importance that BitBuy’s integration brings to the WonderFi and DeFi community.
Canada is a good choice
“Historically, Canada has been known for helping to promote a market for high-risk investment products,” Arbus told Be[In]cryptocurrency. “So, while the U.S. and other markets are fairly large, Canada has a very developed brokerage system, financial system, public market system, small primary exchanges that Canadians know well, and active levels of market participants ready to fund those things.”
According to Arbus, for crypto entrepreneurs without a track record of getting into venture capital, which requires substance and a certain level of credibility, Canada can serve as an alternative to finding other sources of funding.
Samaroo and Arbus turned to the community, each explaining how their platforms can build and manage their respective communities while continuing their mission of integrating platforms.
“I think what we’ve done with WonderFi is not just going after people who want to trade cryptocurrencies, but also trying to create better access to digital assets for people who don’t currently have experience or are really interested,” Samaroo told me[In]cryptocurrency.
“We’re trying to create new on-ramps for people through gaming and NFTs, people aren’t necessarily interested in trading, but it’s their access to digital assets and a gateway drug into the space.”
WonderFi Education Driver
Samaroo emphasized that WonderFi’s current strategic initiatives in this space are all part of its educational drive to help remove barriers that make people feel “stupid or ignorant.”
“One of the biggest challenges we hear from people is that the level of conversation is too high for them; they feel stupid. The education part is an important aspect of our community,” he noted.
In addition to Samaroo’s point, Arbus mentioned what he called the “big investment envelope.”
“Beyond education, there are multiple types of users in Web3… Investors and speculators who want to make some transactions, people who want to store some value (investment products), people who want to earn some returns (a kind of investment products),” Arbus explained.
“So, you have this big investment envelope and our slogan is that we are the destination for crypto investors; that was the first generation of early adopters… So, if we could offer all of this through one hub, that’s us big vision because it doesn’t matter where that person came into the community. Once they become part of our community, they start to age, their income starts to grow, they start to stop caring about why they joined the WonderFi community in the first place and start Concerned about other aspects, such as benefits and returns.”
Canadian Web3 Council
WonderFi’s acquisition and integration of Coinberry will make WonderFi Canada’s largest publicly traded end-to-end consumer platform for those seeking access to CeFi and DeFi.
Last month, WonderFi revealed that it joined the Canadian Web3 Council as founding members, along with Dapper Labs and Wealthsimple. The Council is a non-profit trade association dedicated to positioning Canada as a leader in Web3 technologies such as blockchain and encryption, advocating for a national Web3 strategy to support a more transparent and inclusive digital economy.
“The committee is important as Canada continues to have the opportunity to be a leader in digital assets,” Samaru told Be[In]cryptocurrency.
“I think regulators are very progressive here [referencing Canada], though they move slowly like any regulator. With everything going on in Web3 and DeFi, there are a lot of places struggling to figure out how to handle it without the complete concentration of technology. I think this coalition has come together to get the most engaged people in the room to be part of the conversation and help position Canada as the epicenter of Web3. “
Expected to close in the second quarter of 2022
The acquisition has been approved by the boards of WonderFi and Coinberry and is expected to close in the second quarter of 2022, subject to approval by WonderFi and Coinberry shareholders.
Cassels, Brock and Blackwell acted as legal counsel to WonderFi in this transaction, and Haywood Securities provided a fairness opinion to the WonderFi Board of Directors. DLA Piper acted as legal counsel for the Coinberry transaction, and Research Capital provided a fairness opinion to the Coinberry board.
last August, yes[in]When WonderFi made its public debut, Crypto spoke with O’Leary about what this generation should be doing with DeFi right now.
“I told my son that this was an opportunity to democratize investing, make it cheaper and be completely transparent, so that people could use cryptocurrencies and earn interest on their holdings and income,” he told me. “Just expose yourself to it; you don’t have to go all out, just teach yourself because the barriers to entry are very, very low.”
Referring to WonderFi, he advises users to “try it and learn from it because that’s the whole idea. It’s a huge educational process that we’re going to go through here and people are going to realize that they can actually use it to develop an investment strategy to get some Income, which is what I wanted in the first place.”
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