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Popular cryptocurrency exchange Binance is allegedly in talks with the owners of coinmarketcap.com in hopes of buying the website for $ 400 million. People familiar with the matter explained that the acquisition will be announced this week and could be one of the largest purchases in the cryptocurrency and blockchain industry to date.
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Binance will reportedly purchase Coinmarketcap.com for $ 400 million
Binance has grown quite a lot since it launched in 2017 when the global cryptocurrency exchange was founded by Changpeng Zhao (CZ) and Yi He. The following year in 2018, the exchange was considered the largest in the world in terms of cryptocurrency trading volume. The company has also acquired Indian exchange Wazirx, Beijing-based Dappreview, a derivatives exchange called JEX, Mars Finance, and a mobile digital currency wallet branch called Trust Wallet. Now, according to people familiar with the matter, Binance is set to announce another acquisition and could end up being the largest supply in the cryptocurrency industry so far.
The official crypto-land story is that Binance is close to completing a cash and stock deal with the owners of coinmarketcap.com. The website is one of the most popular cryptocurrency data sites and according to Alexa ratings, coinmarketcap.com is ranked 570 worldwide and 819 in the US. Coinmarketcap (CMC) receives a lot of traffic from countries like the US, India and Brazil as the site sees millions of users who visit the site regularly. Binance’s acquisition of coinmarketcap.com is apparently a cash and stock deal involving $ 400 million. Speculators assume it will be the largest acquisition in the cryptocurrency and blockchain industry to date. For example, the coinmarketcap.com transaction would exceed the capital injected into 21 Inc. ($ 121 million), otherwise known as earn.com.
CMC data discrepancies and crypto community comment on Binance acquisition
Both Binance and coinmarketcap.com did not speak to the media about the acquisition, but Binance CEO Changpeng Zhao hinted at some upcoming purchases that he was “very excited” about. Coinmarketcap has an interesting history as owner Brandon Chez kept his identity unknown, until he was robbed by the Wall Street Journal on January 23, 2018. Chez also sat down for a chat with the anonymous Sunny King the last year during The Capital conference.
Coinmarketcap has also had its share of controversies and a number of people don’t trust the data that comes from the site. The cryptocurrency market capitalization aggregation website was criticized during the first week of January 2018 for removing the exchange rates of South Korean cryptocurrency trading platforms. When crossing data from coinmarketcap.com with alternative cryptocurrency market valuation sites like messari.io, there are some discrepancies when it comes to “reported” and “real” or onchain trading volumes.
After Binance’s acquisition of coinmarketcap.com (CMC), the stories hit social media and crypto forums, a large number of advocates for digital assets discussed whether it would be “good or bad” for CMC. “I don’t like it at all – I guess I’ll continue to use my favorite CMC alternatives,” one person tweeted after hearing the news.
“CMC has been a problem for years – The amount of scams they allowed to advertise on their site was terrible. Hopefully. [Changpeng Zhao] change that, “another crypto advocate added. A large number of Twitter comments have been negative, and many people have also talked about the relationship between Tron and Binance.
“Binance Buying [coinmarketcap.com] – How long will it take before BNB and Tron are no. 1 and n. 2 and will Digibyte be removed from the list? “the Twitter account @Litecoinfam tweeted Tuesday.
What do you think about the possibility of Binance acquiring coinmarketcap.com? Let us know in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons, CMC, Binance, Twitter
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