Binance to Acquire CoinMarketCap

Binance to Acquire CoinMarketCap

A recent report came out about the world’s biggest bitcoin and cryptocurrency exchange, Binance. It seems this giant crypto negotiates the possibility of acquiring popular crypto data site CoinMarketCap.

The deal looks set to see Malta-based Binance pay as much as $400 million for U.S.-based CoinMarketCap. As a matter of fact, the bitcoin and crypto news and analysis website The Block broke the news.

The Block reports the massive would come later this week. No wonder that CoinMarketCap’s ability to drive “a significant amount” of web traffic is a major reason for Binance’s interest.

“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, warning that CoinMarketCap will no longer be impartial. However, 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.

“A stake from Binance might likely work better than an acquisition.”

The chief executive of Binance, Changpeng Zhao (CZ), earlier this year teased two “major” acquisitions in the company pipeline that he is “very excited” about—adding he expects the deals to have a “significant impact” on the sector.

“As the saying goes, when you can’t beat them, buy them,” CZ wrote to Binance users in January.

Binance Is Heading to Expansion

“What happens when we identify top talent with a top product that we can’t beat? Exactly, 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 announced publicly so far,” CZ said.

Binance has been focusing on expansion around the world in recent years, taking its services to the U.S. in 2019.

This will be Binance’s fifth major acquisition, according to data from Crunchbase.

If the Binance bid for CoinMarketCap goes through it would be one of the largest ever in the burgeoning bitcoin and cryptocurrency industry and a sign it’s beginning to mature.

Binance declined to comment when asked about the deal.

Leave a comment