The combination of the words “hostile takeover” and cryptocurrencies is not very common. A report from press claims that a startup known as Valor Foundation is planning a hostile takeover of Ripple, the $14 billion cryptocurrency. According to BTC Manager, if such a takeover is actually completed, it will be the first hostile takeover in the cryptocurrency industry.
The report from Axios claims that Valor, which is a non-profit foundation that seeks to provide services to unbanked people, is reportedly coming up with a plan to do a hostile takeover of XRP. The Foundation attempted to raise $160 million in an ICO process, but failed to do so. The non-profit foundation is, according to press, seeking for funds to take over XRP, whose market cap is around $14 billion.
If Valor raises the money, it will use it to short XRP and make it less expensive. The funds will be raised through debt, and not through a Valor token sale. After the XRP’s price is lowered, the Foundation, reportedly, plans to fork the Ripple code and after the process is completed, give every XRP holder a Valor token. For the completion of the takeover, Valor would urge XRP holders to sell their XRP stakes and receive Valor tokens instead.
While the whole scenario seems a “fairy tale”, considering the power and market cap of XRP, according to Axios, the CEO of Valor Foundation confirmed that the non-profit is indeed planning a hostile takeover of one of the top ten cryptocurrencies by market cap. However, there is no detail as to what the target is.