Binance set to Acquire CoinMarketCap for $400 Million.

Binance set to Acquire CoinMarketCap for $400 Million.

By CryptoCation | The CryptoCation | 31 Mar 2020


One of the world’s most widely used cryptocurrency exchanges, Binance, is set to acquire popular crypto data website CoinMarketCap.

The deal is reported to be in the final stages, which looks set to see Binance pay as much as $400 million for U.S.-based website; CoinMarketCap. The news was first reported by bitcoin and crypto news website The Block.

The acquisition is expected to be announced later this week and CoinMarketCap’s ability to drive “a significant amount” of web traffic is a major reason for Binance’s interest.

To date, CoinMarketCap has not raised any outside funding and is “financially independent”. Carylyne Chan, chief strategy officer of CoinMarketCap, recently stated. “We don’t plan to raise any funds soon; we can still continue bootstrapping and scaling at this point,”

The rumors of this acquisition have shaken the cryptocurrency space for better and for worse.

“I wonder how Binance is going to deal with the obvious conflict of interest,” Larry Cermak, The Block’s director of research said via Twitter. Larry believes that CoinMarketCap will no longer be unbias with its data although it already doesn’t have a good reputation among the bitcoin and crypto community.

“Who would ever trust CoinMarketCap after this,” asked Eugene Ng, head of sales at Matrixport and former trader at Deutsche Bank, via Twitter, adding the deal doesn’t make sense to him.

CZ Binance

Changpeng Zhao (CZ),  teased two “major” acquisitions for the company earlier this year that he is “very excited” about, adding he expects the deals to have a “significant impact” on the sector.

“When we identify top talent with a top product that we can’t beat, and the teams share common values, a merger makes sense in most cases. There are always a number of deals being discussed at any given time, and there are 2 that I am very excited about specifically. We will announce them in due time.”

Binance made nine acquisitions in 2019, with “only a small number of them being publicly announced so far,” CZ said. These include – wallet provider Trust Wallet, blockchain data startup DappReview; Indian cryptocurrency exchange WazirX and little-known Seychelles-based derivatives platform JEX.

Binance Acquisitions

Binance has been focused on expansion around the world in recent years, taking its services to the U.S. in 2019. CoinMarketCap is the most popular crypto data aggregator, drawing 207.2 million visitors over the last six months. Binance, in retrospect, has drawn in 113.8 million visitors during the same time frame.

CoinMarketCap’s ability to drive a significant amount of traffic is one of the major reasons for the acquisition. It was founded in 2013 by the anonymous Brandon Chez in Delaware, U.S. 

Binance remains the most visited crypto exchange with about a 22% traffic share. It is in close competition with Coinbase, which has a share of about 21%. The acquisition should help Binance gain significant market share in the cryptocurrency exchange race.

Binance Web Traffic

Overall this rumored acquisition improves Binance’s control over the crypto space. Binance is quickly becoming the most influential blockchain-based company as it continues to grow and evolve. This bodes well for the growth of the cryptocurrency sector as major players continue to expand the evolution and accessibility of cryptocurrencies.


CryptoCation
CryptoCation

A software developer who has a passion for blockchain technology and spreading the word for cryptocurrencies. BTC Donation address: 37H9efwajQcEyNE9aogf6wJyVVEruH19FM


The CryptoCation
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