Australian Crypto ‘Super App’ Canned Along With $2.2B Merger
Swyftx had hoped to merge its crypto exchange business with trading app Superhero to create Australia’s first “super app”
Anton Balazh/Shutterstock modified by Blockworks
Australian investment platform Superhero and crypto exchange Swyftx have terminated a billion-dollar merger that would have created the country’s first digital assets “super app.”
Swyftx will sell Superhero back to its co-founders, John Winters and Wayne Baskin, alongside investors who had backed the app two years ago.
A tightening regulatory environment at home is being blamed for the demerger. Swyftx only one month ago insisted its deal with Superhero, struck in June, would forge ahead unabated.
At the time, Swyftx sought to raise fresh capital to assist its integration with Superhero, which had yet to materialize due to “customer service concerns,” Australian Financial Review reported earlier this week.
The merger’s valuation — 1.5 billion Australian dollars ($2.2 billion) — had been based on various business fundamentals including past revenue and forecast revenue, signed off by both company boards.
The canceled deal comes amid a sensitive time for the crypto industry worldwide, wrecked by alleged fraud at FTX, the latest in a string of scandalous blowups.
To prepare for a prolonged crypto winter, Swyftx axed some 90 employees at the beginning of the month, following up an initial cut of 74 staff in late August.
Earlier this month, a spokesperson for Swyftx told Blockworks that despite the layoffs the exchange had “no issues” with liquidity and was not at risk of insolvency.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
- Empire: Start your morning with the top news and analysis to inform your day in crypto.
- Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
- 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
- Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
- The Drop: For crypto collectors and traders, covering apps, games, memes and more.
