Here is an astonishing News of digital trading worlds:
Binance and CoinMarketCap Announce Acquisition to Collectively Make Cryptocurrency More Accessible for Everyone.
Binance announced that it has reached an agreement to acquire CoinMarketCap. Together, they will pursue their common vision of making crypto assets more accessible and useful to users around the world.
While global markets are experiencing tough times amid the coronavirus pandemic, the crypto industry is getting stronger as its core players have tapped one of the biggest crypto mergers in history.
the world’s biggest cryptocurrency exchange, widely recognized as the largest cryptocurrency exchange worldwide, providing the best liquidity, transaction execution, and price discovery for the largest selection of cryptocurrencies.
one of the most-referenced crypto data websites, known as the most-trafficked website to obtain crypto-assets and exchange information and rankings. It is one of the most-cited sources for crypto asset prices and exchange trading volume and has maintained independence from external stakeholders since inception.
The companies officially announced the acquisition on April 2, 2020.
Changpeng Zhao, founder, and CEO of Binance said that Binance and Coin Market Cap are very similar, as they are both providers of “access-to-crypto” and share a vision of making crypto assets more accessible and useful for people around the world. Zhao said:
“The acquisition will enable us to build on each other’s strengths, and further grow and instill transparency in the industry,”
Zhao stated that the company has been in talks with the Coin Market cap for a few months before closing the deal in April. While the acquisition is rumored to have cost Binance $400 million, Zhao said that the company cannot disclose the amount of the deal, as it is protected by a non-disclosure agreement.
Coin Market Cap will operate independently
Although The companies are going to work closely together, the Coin Market cap will still continue to operate as an independent business entity.
Policies and Alternations :
the two companies are separate entities that maintain a strict policy of independence from one another. Binance has no bearing on CoinMarketCap rankings, while CoinMarketCap does not influence Binance’s operations.
“CoinMarketCap will continue to expand on the mission of making crypto as an industry and asset class more discoverable and efficient.“
“ many of the users will love the new products and changes we plan to launch at CoinMarketCap in 2020.”
CoinMarketCap stays committed to providing the most accurate, timely, and quality cryptocurrency data in the industry. Meanwhile, it is going to benefit from Binance’s expertise, resources, and scale. it pledges to continue providing the highest level of information integrity by ensuring data accuracy and improving its ranking methodologies. the company also intends to expand its information offerings to include trading products such as futures, options, lending, and more value-added data analytics and tools.
Coin Market Cap will immediately undergo some internal restructuring as part of the deal. Brandon Chez, the founder of CoinMarketCap will be stepping down to focus on his family. Chez is planning to focus on his family. After seven years of running the company, he will remain as an advisor to CoinMarketCap. His position will be passed to Carylyne Chan, former Chief Strategy Officer, who is now the interim CEO.
How does the buyout affect CMC and Binance?
- The deal seems to make sense for Coin Market Cap. Since the platform already has a steady revenue-generating business with its advertisements and paid API plans.
- Binance is constantly looking for ways to penetrate the United States market. In February 2020, CoinMarketCap registered 5.19 million visits from American users, which is roughly 14.1% of the company’s web traffic. Meanwhile, Binance only had 8% of its web traffic come from the U.S. — roughly translating to around 1.9 million web hits. Acquiring CMC will help Binance grow its U.S. user base. For CMC, this acquisition will help them grow in other regions as well.
- Additionally, CoinMarketCap now has an enviable array of options when it comes to becoming increasingly commercialized.
- Moreover, financial support from Binance increases CMC’s attractiveness. Therefore, it turns the data platform into a major generator of leads for new registrants.
- Lastly, Binance acquired CMC primarily because of two key factors: namely customer acquisition and data flow.