FinTech Acquisition Corp Calls Off Merger With eToro: Report

FinTech acquisition corp calls off the merger with crypto platform eToro and the mutual agreement didn’t name a party at fault but it seems that eToro won’t be going public anytime soon so let’s have a closer look at today’s latest cryptocurrency news.

FinTech Acquisition Corp is a specialized company focused on financial services which agreed to call off the merger agreement with eToro. The social investing network said that the companies failed to satisfy certain closing conditions by June 30 which made them unable to complete the transaction. According to the press release from eToro, one condition related to the company’s registration statement was connected with the merger call-off, and having been left unsatisfied, the merger agreement was terminated.

The merger agreement would have allowed eToro to go public and the company already provides a trading platform for stocks, ETFs, commodities, and cryptocurrencies to more than 27 million registered users. Fintech V is a SPAC firm backed by the banking entrepreneur Betsy Cohen. The chairman showed quite a disappointment over the failed agreement and he blamed it on circumstances outside of both parties’ control. In the meantime, eToro CEO Yoni Assia maintained that the company’s underlying business remains healthy despite the outcome of the deal:

“We remain confident in our long-term growth strategy and excited for the future of eToro.”

As the agreement to terminate the deal was mutual, no party will have to pay a termination fee to the other. When the merger was announced, the equity value of the combined entities stood at $10.4 billion. eToro even delisted Cardano and Tron back in November due to regulatory concerns which disappointed the Cardano founder Charles Hoskinson.

As recently reported, The eToro trading app announced a $20 million creator fund that will launch as a new initiative to support upcoming NFT projects and the creators can buy some NFTs as well. The NFTs are unique tokens that exist on the blockchain and signify ownership over an asset like a piece of digital art. In a statement, eToro shared that it holds ETH NFTs from the Bored Ape Yacht Club, Doodles, Crypto Punks, and World of Women.

The company committed half of the $20 million to support new NFT creators and anyone can apply to get this funding. The platform will offer an open application for new and aspiring artists to pitch an NFT project like membership-based NFT, a profile picture, or a video game that uses NFTs as In-game assets.