The crypto specialist portal Coindesk is up for sale. The founder of Cardano (ADA), Charles Hoskinson, can imagine a takeover. But he considers the estimated price of 200 million US dollars too expensive.
Digital Currency Group (DCG) is in financial trouble, and its subsidiary Genesis initiated insolvency proceedings on January 19. At the same time, it became known that DCG is putting crypto trade medium Coindesk up for sale. And Charles Hoskinson took this news as an opportunity to register his interest in Coindesk via Twitter video. According to the founder of Cardano (ADA), he is interested in strengthening journalistic credibility.
A quick deal is likely to be difficult, because Hoskinson considers the price of 200 million U.S. dollars demanded for Coindesk to be “overpriced. He plans to provide his own valuation once Coindesk’s books are audited. When Digital Currency Group acquired Coindesk in January 2016, it reportedly paid $600 million to $600 million. By its own account, Coindesk employs more than 50 crypto journalists and finds more than 13 million readers a month. Coindesk hit the headlines itself when it exclusively published internal documents from Alameda Research and FTX in November 2022, prompting the bankruptcy of Sam Bankman-Fried’s corporate network.
Hoskinson already presented ideas on how journalism could be organized in a more decentralized way. Coindesk, for example, could offer financial incentives for successful articles and fine authors of false reports. The decision-making power should be placed more clearly in the hands of the readers, says Hoskinson. He also hopes this approach will prevent Coindesk’s coverage of Cardano and ADA from devolving into adulation. Further, Hoskinson suggests producing more and better videos at Coindesk as well as thinking about a “metaverse component.”
Conclusion: Coindesk and Cardano boss Hoskinson – can it work?
Hoskinson is getting a lot of media attention for his push, which the 35-year-old always enjoys. Whether he is serious about pursuing a takeover of Coindesk, the coming weeks will have to show. Coindesk has hired investment bank Lazard Ltd. to review offers and organize negotiations if necessary. What seems clear is that Digital Currency Group is trying to get its finances in order and is factoring in revenue for Coindesk. Hoskinson’s assets are estimated to be at least $600 million and should make a purchase of Coindesk possible. It would be a spectacular deal from Hoskinson, who rose to prominence in the crypto scene as a co-founder at Ethereum (ETH) before Cardano.