Ripple Buying Circle Could Cause ‘Crypto Apocalypse,’ Prominent Lawyer Claims

MetaLeX Labs founder Gabriel Shapiro has opined that Ripple acquiring Circle could result in a "crypto apocalypse."

However, if Ripple ends up securing the deal, it will likely fail to pass the antitrust muster.

Regulators review deals for antitrust concerns, meaning that they will determine whether the deal could allow Ripple to gain too much control over the ecosystem.

"Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive," Shapiro said.

Shapiro has noted that the company previously used its influence in order to harm its competitors by spreading fear, uncertainty, and doubt (FUD). Back in 2022, for instance, Ripple's Chris Larsen teamed up with Greenpeace in order to launch a campaign against Bitcoin mining.

The analyst has added that Circle should take into account the Revlon doctrine, which posits that a company should secure the best deal for shareholders. This means that the USDC issuer should consider antitrust-related risks when making a potential deal.

"If a definitive agreement is signed, we will be at the DoJ's and FTC's doorstep, citing Ripple's history of campaigns against Bitcoin and Ethereum…," Shapiro added.

Ripple is reportedly competing with exchange giant Coinbase for Circle.

As reported by U.Today, Ripple's $5 billion bid was previously rejected due to being too low.

According to Fortune, Coinbase appears to have the upper hand, but Ripple also boasts a huge number of XRP tokens that allow it to be in a strong acquisitive position.