A massive deal announcement is about to send shock waves across the cryptocurrency market. Binance exchange has reportedly acquired crypto price index website, CoinMarketCap for a whooping $400 million.
CoinMarketCap, based in the United States and Binance in Malta are said to be working on the final stages of the deal. The news of the transaction was first reported by TheBlock, a crypto news and analysis platform.
Binance-CoinMarketCap purchase deal leaks early
Both Binance and CoinMarketCap have reportedly did their best to keep the deal under wrap until the sale becomes official next week. However, the information leaked out; presumably by an insider of one of the firms.
Head of research and development for The Block, Larry Cermak said on Twitter:
“I wonder how Binance is going to deal with the obvious conflict of interest.”
Can CoinMarketCap remain impartial?
CoinMarketCap is the most utilized coin prices tracker and exchanges ranking platform the digital currency market however, its popularity and growth is mostly propelled by crypto market newbies. Its reputation with experience traders and those involved in the market for a while remain sketchy.
Eugene Ng, Matrixport director of sales tweeted his disapproval of the acquisition:
“Who would ever trust CoinMarketCap after this.”
“A stake from Binance might likely work better than an acquisition, just defeats the purpose of having a balanced and neutral index aggregator.”
Binance’s Chief Executive Officer, CZ teased major acquisitions
Early in the year, Binance’s founder and current CEO, Changpeng Zhao (CZ) teased the company was working on two big purchases. He said he was “very excited,” and gloated that the planned acquisitions will have a “significant impact” on the digital asset space.
“As the saying goes, when you can’t beat them, buy them.”
“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.”
In 2019, Binance aquired nine (9) companies. CZ has created a very aggressive expansion plan. A few months ago, he launched Binance.Us to exclusively serve the U.S. market.
Binance’s purchase of CoinMarketCap is largest acquisition so far this year. This is a strong sign the cryptocurrency market and Bitcoin are moving in the right direction.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.