2020 has proven to be the year of crypto mergers and acquisitions by more than $ 600 million spent in 60 deals during the first half of the year. Many of these deals come from industry titans like Coinbase who are buying up additional products and services. What is less common is the merging of two established and live trading blockchain companies.
LTO network and VIDT have officially announced that they will merge, creating what is now the largest blockchain company in the Netherlands. More specifically, the merger will align two companies dedicated to providing enterprise B2B blockchain solutions. The merger comes just two weeks after LTO Network’s partnership announcement with the United Nations to put land plots on the blockchain.
Both companies are well known and are currently ranked in the top 250 blockchain companies by market capitalization. LTO network technology provides a common platform for developers to create innovative applications without worrying about the blockchain back-end and front-end needed to run them. With their system, they can also be integrated into their customers’ already working legacy systems.
VIDT Datalink, on the other hand, is a blockchain-powered document certification platform. With the VIDT API, organizations can certify their digital data and protect it against fraud and manipulation. With VIDT’s Datalink architecture, VIDT Datalink is compatible with almost any existing system to ensure data integrity without affecting workflows.
LTO Network’s vertical expertise, scope and development toolkit for decentralized workflows will help VIDT Datalink scale and reach more partners and customers immediately. For LTO Network, VIDT brings their expertise in proprietary solutions and open-source API interfaces for companies using them to anchor and verify documents. In addition, VIDT often cooperates with NTFs that guarantee the validity of valuable goods and thus help prevent fraud.
The strategic merger is supported by a long working history
For LTO and VIDT, the relationship between the two Dutch companies is deep as the founders have a personal friendship and track record in terms of collaboration, such as providing digital certificates, securing sensor data with IBM, and providing file authentication for various companies such as AmSpec , NEN, and many others.
The merger will form the basis for a political and strategic pivot that combines the presence of VIDT Datalink as a member of DBC and of LTO Network as a member of Techleap. This can help expand the reach of potential clients across the spectrum of work and social platforms. In addition, the new company will share strategic management of resources and a central location to reduce costs.
According to the official release, the merger is also a starting point for a much larger purpose. Rick Schmitz, CEO of LTO Network says: “Data is one of the most valuable resources in the world, and the combination of LTO Network Data integrity solutions combined with VIDT technologies creates a strong confidence for both companies to achieve top 15 blockchain business status and an overall glorious future. “
How the merger will affect token holders and operations
One of the most common concerns with live trading company mergers is what will happen to the existing tokens. In this case, the tokenomics will change for both projects, but the token stocks will remain as they are and their stocks, communities and teams will remain the same. The total value locked (TVL) of VIDT (all transactions) now goes entirely to LTO instead of other blockchains, creating an expected network growth for LTO.
Further financial updates and new tokenomics will be released by both teams shortly.