Blockchain infrastructure company Chain completes $100 million acquisition of MDT token ecosystem

Quick Take

  • Chain acquires Measurable Data Token ecosystem for $100 million.
  • The deal is unique inasmuch as it will involve a merge between Chain’s XCN and MDT.

Count this as a sign that merger-and-acquisition activity in the crypto market is robust despite the slump in cryptocurrency prices. 

Blockchain infrastructure firm Chain announced on Saturday the acquisition of Measurable Data Token (MDT). The $100 million deal will provide Chain — which offers developers cloud services to build blockchain-based applications — with a number of assets, including MDT, cash-back application RewardMe and financial data protocol MeFi. 

The deal is unique inasmuch as it will involve a token conversion in which MDT will become Chain's native token XCN — an example of the sometimes idiosyncratic nature of transactions in the digital asset space. 

The firm's internal M&A handled the deal, alongside advisers from Tanner De Witt and Rooney Nimmo. 

"With this acquisition, there will be a sunset of the Measurable Data Token (MDT) which will be burned and swapped for XCN token," a blog post said. "MDT token holders will receive the benefit of the swap and will be expected to receive a $0.08 MDT token value for the swap."

To be sure, there is precedence for this type of deal, as now-beleaguered Voyager Digital's acquisition of LGO Markets resulted in a merge between the two firms' tokens. 

Speaking to the process, Chain CEO Deepak Thapliyal said it was "complicated and requires a lot of counter-party assistance."

He added: 

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"We will need the assistance of exchanges to support the swap for tokens that are off-chain. For tokens on-chain, the process will be a lot less complicated and will be available through a simple smart contract since we are both primarily ERC20 tokens."

At last check, XCN was trading on Coinbase at $0.09 a coin. 

Chain was founded in 2014 by Thapliyal, who is a well-known NFT collector and investor. Thapliyal purchased an Alien Punk for $23.5 million. 

As for the M&A market, Galaxy Digital's lead investment banker told The Block that the market downturn may lead to more opportunities for deal-making. 

"Overall, there is a lot more receptivity to the idea of M&A in this market environmen