Jack Mallers has resigned as CEO of XXI Capital. The decision coincides with the abandonment of the merger project involving three cryptocurrency companies that Tether had sponsored.
Jack Mallers, founder and until now CEO of XXI Capital, has submitted his resignation, it has emerged this Tuesday. The departure comes just as the ambitious plan to merge XXI Capital with Strike and Elektron Energy, backed by Tether, has fallen apart without any official explanations being offered.
A merger that promised to revolutionise the sector
The agreement, announced a few months ago, aimed to bring together three players with very different profiles under one umbrella. Strike, also founded by Mallers, is an instant payment platform that seeks to bridge the gap between cryptocurrencies and traditional banking. Meanwhile, Elektron Energy focuses on energy management for the crypto industry, an increasingly strategic area given the high consumption of mining farms.
The operation would have resulted in one of the largest cryptocurrency conglomerates in the world, with a presence in payments, energy, and venture capital. However, negotiations have broken down without the reason being made public. Sources close to the matter suggest that Tether, the issuer of the USDT stablecoin and the main promoter of the project, may have withdrawn its support, leading to the collapse of the merger.
The shadow of Tether and market uncertainty
The influence of Tether in the crypto ecosystem is enormous. The company has participated in dozens of corporate operations, and its backing is often seen as a mark of guarantee. Its withdrawal in this case has left XXI Capital, Strike, and Elektron Energy in a delicate position, with no visible plan B.
For investors and users of these platforms, the situation generates uncertainty about the future of the services. Strike, for example, has gained popularity in Latin America for its fast and low-cost transfers. If the merger had been completed, it could have scaled its technology to more countries. Now, with Mallers' departure, the project hangs in the balance.
What will happen now with XXI Capital?
The resignation of Jack Mallers leaves a void at the top of XXI Capital. The company has not announced a successor nor detailed its short-term roadmap. Mallers, who remains a shareholder, has not made any public statements about his next steps.
The crypto market has already reacted: the token associated with Strike has fallen by 12% in the last 24 hours, according to data from CoinGecko. Analysts warn that volatility could continue until the future of the three companies involved is clarified.
“The merger was a logical move to create a vertically integrated giant. Its failure demonstrates how difficult it still is to consolidate the sector,” says an industry analyst who prefers to remain unnamed.
For Strike users, the recommendation is to stay calm and not make hasty decisions. The platform continues to operate normally, but it is advisable to stay alert to official communications. As for Elektron Energy, its business model depends on contracts with miners that may now need to be renegotiated.
The crypto industry remains a testing ground where alliances are formed and broken quickly. The case of XXI Capital, Strike, and Elektron Energy is just the latest example that, in this ecosystem, nothing is set in stone until it is signed.
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