2020 has proven to be a crypto M&A year with over $ 600 million spent in 60 deals in the first half of the year. Many of these deals have come from industry titles such as Coinbase, purchasing auxiliary products and services. What is less common, is the merger of two established blockchain companies and live trading.
LTO Network and VIDT have officially announced the merger, creating what is now the largest blockchain company in the Netherlands. More specifically, the merger will align two companies dedicated to providing B2B enterprise blockchain solutions. The merger comes just two weeks following the announcement of LTO Network’s partnership with the United Nations to begin putting land parcels on the blockchain.
Both companies are well known and are currently ranked around the top 250 blockchain companies based on market cap. LTO Network’s technology provides a common platform for developers to create innovative applications without worrying about the blockchain and front end needed to make them work. Their system also allows them to be integrated into the legacy systems of their existing customers.
VIDT Datalink, on the other hand, is a document certification platform powered by blockchain. The VIDT API enables organizations to certify and secure their digital data against fraud and manipulation. With Datalink VIDT architecture, Datalink VIDT is compatible with virtually any existing system to ensure data integrity without affecting workflows.
The LTO Network’s vertical expertise, size and development toolkit for decentralized workflows will help Datalink’s VIDT scale and reach more partners and customers right away. For LTO Network, VIDT brings their expertise in proprietary solutions and open source API interfaces for corporations that use them to anchor documents and check them. In addition, VIDT often works with NTFs that ensure the authenticity of valuable goods, helping to prevent fraud.
The Strategic Merger is supported by a Long Working History
For LTO and VIDT, the relationship between the two Dutch companies runs deep as the founders have personal friendships and a history of collaboration, such as issuing digital certificates, securing sensor data with IBM, and providing file authentication on for several companies like AmSpec, NEN, and many others.
The merger will provide the foundation for a political and strategic pivot that combines the presence of Datalink’s VIDT as a member of DBC, and of LTO Network as a member of Techleap. This can help broaden the reach of potential clients across the spectrum of work and social platforms. In addition, the new company will share strategic resource management and a central location to save costs.
According to the official release, the merger is also the starting point for a much larger goal. 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 blockchain 15 top business status and an overall glorious future.”
How The Merger Will Affect Ticket Holders and Operations
One of the most common concerns about the merger of live trading companies relates to what will happen to existing tickets. In this case, tokenomics for both projects will change, however, the symbolic supplies will remain as they are with their supplies, communities and teams remaining the same. VIDT’s total locked-in value (TVL) (all transactions) will now go fully to LTO instead of other blockchains, creating forecast network growth for LTO.
Further financial updates and new symbolism will be released soon by both teams.