I don't like to spread bad new but this is too important not to say something about it!
According to Bitcoin.com, Binance is in the final stages of talks to acquire Coinmarketcap (CMC). Binance is lead by well known crypto personage Changpeng Zhao (CZ).
CMC is one of the most popular cryptocurrency data websites, ranked 570 worldwide on Alexa. Coinmarketcap gets a lot of traffic from countries like the US, India, and Brazil as the site sees millions of users visiting the site regularly, but I have switched to Coingecko already. Also, Coinmarketcap is known for manipulating the market by showing fraudulent information to the community.
While Justin Sun bought Steemit, the three exchanges (Binance, Huobi, Poloniex) acted together to take over the Steem network using customer funds. Binance and Huobi acted swiftly on this ethically-dubious act, which did not even concern their direct financial interests, but those of a friend's side-project.
TheDesertLynx says in an article published on the blog: "This shows that, in practice, all three operate together as one entity without the need for extreme circumstances. Just the valuations of all three cryptotokens, Tron, Binance Coin, and Huobi Token, combined come to about $3.5 billion, just shy of a top-five crypto position." (see reference at the end)
And, we must not forget that the real fact is that China has huge mining power. So, the question is: through these centralization actions, it is possible to affect bitcoin and even control it? However, the Bitcoin community must do something to conserve it!
But how? Possible solutions:
- Control your keys and don't leave them to exchanges!
- Diversify investments, create your MyDIP - My Diversified Investment Portfolio;
- Look into the projects you support. Look up the consensus model and distribution, as well as coin supply and how much is controlled by parties;
- Investigate the jurisdiction, and ethical behavior, of exchanges you use. And stay way from those of both which exhibit centralized tendencies;
- Act before it is too late!
References:
- CMC: https://coinmarketcap.com
- Coingecko: https://www.coingecko.com/en
- Bitcoin.com: https://news.bitcoin.com/binance-acquire-coinmarketcap-com-400m-cash-stock-deal/
- CMC market manipulation: https://medium.com/letknownews/how-coinmarketcap-manipulates-the-market-by-showing-fraudulent-information-to-the-community-101e922e6fc
- TheDesertLyinks: https://www.publish0x.com/digital-cash-network/are-we-still-pretending-the-crypto-world-is-decentralized-xqrkqg
- Image source: Pixabay free commercial license.
