The cryptocurrency industry is full of surprises, and this week was no exception. On October 12, it was announced that Loom, a video messaging app, was being acquired by Atlassian for approximately $975 million. The deal, expected to close in early 2024, was seen as a major coup for Atlassian, as it will allow the company to integrate Loom’s capabilities across its software products, including tools such as Jira, Confluence, and Trello.
LOOM Surges 30% on Unrelated Acquisition News
Surprisingly, the acquisition coincided with a sharp rise in the price of LOOM, a token unrelated to the acquired company in any way. The token, used to power the blockchain-based platform called Loom Network, surged 30% after the news.
At the same time, the token garnered a $300 million trading volume in a matter of hours. At the time of writing, LOOM was trading at $0.28, seeing a 26% jump in the past 24 hours.
The reason for the spike in LOOM’s price is unclear, but many in the crypto industry believe it may be due to a case of mistaken identity. While the two projects share the same name, they are completely unrelated.
Loom & Loom Network
Loom, the newly acquired company, is a video messaging app allowing users to record and share their screen and camera videos. Popular among businesses and individuals for asynchronous communication, the platform was founded in 2016 and headquartered in San Francisco, California.
On the other hand, Loom Network is a cross-chain platform that allows developers to build scalable decentralized applications (dApps) across multiple blockchain networks, including Bitcoin, Ethereum, Tron, and BNB Chain. The project was launched in 2017 and is based in Bangkok, Thailand. LOOM is a proof-of-stake (PoS) token used to secure Loom Network’s mainnet.
Meanwhile, the surge in the price of LOOM indicates that even tokens not directly related to news events can experience significant price swings. Overall, the latest event underscores the need for investors to conduct thorough research before investing in a cryptocurrency token.
