Despite all the negative effects the coronavirus brought, it seems that the world hasn’t stopped. At least the crypto world hasn’t. Apparently, virtual doors are hard to close under a lockdown.
Crypto exchanges continue to work as usual, airdrops are being distributed and collected, and we continue to receive surprising business news.
The most recent one is news that Binance, the largest crypto exchange in the world by trading volume, acquired popular data site CoinMarketCap.
So, let’s find out what happened there.
Binance acquired CoinMarketCap
According to the interview given to CoinDesk, Binance’s CEO Changpeng CZ Zhao stated that the verbal agreement on buying CoinMarketCap was concluded months ago.
“It’s a really good website and I think we can help grow it further,” Zhao stated.
He also added that in order to avoid conflict of interest, CoinMarketCap’s domain will remain independent from Binance as a holding company.
However, some experts claim that Binance could use CoinMarketCap for marketing purposes, and for attracting potential customers to the exchange.
When it comes to the price, The Block and several other publications reported that the acquisition was worth $400 million in cash and stock options.
When asked about the reasons for the acquisition, Zhao stated that “CoinMarketCap has more users than any other product in the crypto space. Even though their money generation mechanism is not as strong as Binance, they do have the users – it’s a very valuable platform.”
This isn’t the first time that Binance got into a spotlight because of acquisition. In November last year, it was published that the company acquired a well-known crypto exchange WazirX.
However, if the rumors about the price of $400 million are true, this is Binance’s biggest acquisition to date. And an excellent business move.
CoinMarketCap is the first spot for most crypto traders and an excellent way for Binance to turn their heads in the exchange’s direction.
Still, some critics considered the acquisition as a conflict of interest and expressed their opinion that CoinMarketCap should keep its independence.
And now it’s your turn. Tell us in the comments: what do you think about the acquisition?
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