Chinese e-commerce giant Alibaba has finally struck a deal with Alibabacoin Foundation, a Dubai based crypto startup, after a long trademark dispute. The long-lasting battle started after the startup named their digital token as Alibabacoin and raised money through a worldwide Initial Coin Offering (ICO).
The rumors about Alibaba Group acquiring the Dubai based startup surfaced early last year. However, the legal dispute over the trademark continued between the two companies before they agreed for the acquisition. The news of Alibaba Group acquiring the crypto startup came via an announcement made by the cryptocurrency company’s website, stating that the two companies have finally agreed. Details of the agreement have still not been made public due to confidentiality issues. However, it can be safely assumed that the deal would be beneficial for both the parties.
Major companies across the globe face several trademark breaches, which end up costing them millions of dollars. Alibaba Group, being the behemoth it is, is extremely sensitive about its trademark, as it has a great influence in global markets, and cannot risk its reputation.
In 2018, Alibabacoin Foundation introduced a new face recognition tech, which enables the users to secure payments using this, a first in the crypto space. The digital token has been performing well and is now in the top 30 cryptocurrencies by market cap. The startup says that it wants to make the digital token as a primary mode of payment in shopping malls across the globe. Ever since its launch, it was speculated that Alibabacoin, which is now called as ABBA Coin, will be acquired by the Chinese conglomerate sooner or later, mainly due to the common name.
On the other hand, the giant e-commerce company owned by the Alibaba Holding Group has been reportedly working on to launch its cryptocurrency, so quite a few months. For this reason, resolving the dispute over the trademark became furthermore important for the Chinese company.
The dispute between the two parties has finally come to an end as recent reports suggest that Alibaba has succeeded in its pursuit to acquire the Dubai based crypto company and the final settlement deal is around the corner. This will let Alibaba Group take complete control over the ABBA coin, ending the long legal battle. The initial injunction requested by Alibaba group in the Manhattan Court had gone in favor of Alibabacoin.
Alibaba, earlier this year, incorporated blockchain technology in its supply chain management systems. The move was in line with several stalwart business corporations across the globe entering the blockchain space, either for improving efficiency and security or for commercialization. Alibaba’s global rival, Amazon has been working for a long time on blockchain technology for improving business operations.
Other behemoth corporations like IBM, Apple, TCS, HSBC, JPMorgan, etc., have all entered the distributed ledger system. In fact, as per the data revealed by the UN World Intellectual Property Organisation (WIPO), Alibaba’s home country, China has filed the maximum number of blockchain patents in 2018, closely followed by the US.
Countries all over the globe are taking giant strides to who established themselves as blockchain leaders, a title currently owned by China and the US. Countries like Venezuela and Russia, which have a troubled relationship with the United States, are taking serious efforts to reduce their dependence on the US dollar by building their cryptocurrencies.
In such times, Alibaba’s acquisition of ABBA coin could prove to be a great strategic move, which would lead the technology giant to strengthen it’s cold in the crypto and blockchain space. The fact that the acquired digital token is already in the top 30 gives the Chinese tech behemoth a head start, which it can use to counter competition or even use it on its own e-commerce platform.