Why is Pluto Digital Acquisition by NFT Investments PLC not happening?

UK based blockchain firm was intended to acquire a defi infrastructure building firm Pluto Digital in 96 million pounds, but now it’s backing off

NFT Investments PLC announced on Friday that it would no longer be pursuing the acquisition of Pluto Digital worth 96 million pounds. A UK-based blockchain firm that makes investments in companies operating the field of non-fungible tokens or NFTs. However, no direct reason has been disclosed for canceling the deal. Still, NFT Investments wrote that the company is in a good position in order to take advantage of recent market corrections in digital assets and blockchain sectors by investing in some attractive valuations. 

NFT Investments bank in January signed a non-binding letter with the intention to acquire the firm that builds infrastructure for decentralized finance or DeFi space via issuing the NFT shares, Pluto Digital. From November last to March this year, the whole blockchain industry has seen an entire month-long bear market situation that sent the total market cap of the overall crypto market down by more than 40% from the all-time high. 

It’s not like all the crypto enthusiasts, and proponents of digital assets are convinced that the huge potential market sell-off is coming to an end. Some of them pointed out the reversal of the US treasury resulted in an increased curve as a sign that a recession is looming on the horizon somewhere. 

The trend since the 1950s, where the yield curve has usually inverted ahead of every recession in the US. The last time it occurred was in August 2019, which led to a flat-out touting activity in the cryptocurrency market as there were situations made due to the emergence of the Covid-19 pandemic. 

However, Executive Chairman of NFT Investments Jonathan Bixby shared his positive approach to the blockchain industry and stated that the NFT sector continuously shows a strong path. Despite the volatile market conditions, the company has secured a portion of seven companies with high growth potential and is perfectly equipped to impact the blockchain space. 

Bixby further said that the NFT Investments also took the opportunity to realize its significant gains from only one investment made in Kodoku Studios, which made them a gain of almost 349% due to its takeover by another major company Pioneer Media Holdings Inc, in November last year. 

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Source: https://www.thecoinrepublic.com/2022/04/09/why-is-pluto-digital-acquisition-by-nft-investments-plc-not-happening/