Binance Confirms Its Acquisition of CoinMarketCap
According to AMBCrypto news, Binance has acquired CoinMarketCap(CMC) for an undisclosed sum, with the two market leaders coming “together to pursue their common vision of making crypto-assets more widely accessible and useful to users globally.”
Binance is one of the three biggest exchanges in the crypto industry. CoinMarketCap is one of the most popular crypto tracking tools on the web. They had more than 200 million visitors per last 6 months. CMC is the most cited source when it comes to the cryptocurrency for blockchain and Bitcoin data.
Coinmarketcap.com was established by Brandon Chez, an anonymous individual from Delaware, United States. He will quit CEO of CMC to focus on his family after seven years of hard work. Brandon Chez stated:
“I believe that of all the teams in the space that could acquire CoinMarketCap, Binance is one of the very best options. They are a team that has shown, time and again, that they care about their users and will do the best for them, even in the most challenging of times. This spirit will continue to echoe in our own user-focused philosophy at CoinMarketCap.”
This is a case of a leading crypto currency exchange acquiring an independent crypto-market data aggregator.
But there are other voices in the industry. After the acquisition, many suspect Binance to be in a position to use its considerable power and influence the data on CMC’s website towards Binance’s own tokens and IEOs. This would raise issues of trust and whether or not Binance may artificially or overly promote coins that are listed on its exchange.
Then why would Binance stake its reputation to initiate this acquisition?
This could be a good way to build on the great traffic CMC gets and drive more traffic to both sites and set them both up as the dominant leaders in a market. Binance has tried to allay such concerns, with the press release claiming that “CoinMarketCap will continue to be run as an independent business entity,” and will only benefit from Binance’s “expertise, resources, and scale.”
It is said, Binance CEO Changpeng Zhao was considering this expansion which worth $400 million quite a long time ago. All because of the possible traffic increase. CoinMarketCap may gains 80% more in pure traffic than Binance, despite it’s not a trading platform.