The crypto industry seems to face the deal of the century. As the major crypto exchange Binance announces the historic purchase of leading crypto data tracker CoinMarketCap.
Binance the largest digital asset exchange by volume reported today the landmark deal, that combines two of the giant brands in the crypto industry. The deal was closed on March 31st, the amount of it is not disclosed yet. Although rumors are circulating it can reach around $400 million.
CoinMarketCap is one of the top data providers on hundreds of cryptocurrencies. A platform tracks the capitalization of different virtual currencies, the number of trades and the current price converted into fiat currencies. From its launch in 2013, the platform has been independent form any external stakeholders.
Meanwhile, Binance cryptocurrency exchange and its native token Binance Coin (BNB) are listed on CoinMarketCap. The official Binance’s report says CoinMarketCap will remain an autonomous business entity and Binance will have no bearing on CoinMarketCap rankings. Changpeng Zhao (CZ), the CEO of Binance told:
Our common vision will be strengthened by this acquisition to further growth and instill transparency in the industry. This will enable us to build on each other’s strengths, jointly serving as infrastructure providers of crypto.
According to the official announcement, CoinMarketCap will have no influence over Binance’s operations. Brandon Chez, the founder of CoinmarketCap said, the Binance will continue user-focused philosophy at CoinMarketCap:
They are a team that has shown, time and again, that they care about their users and will do the best for them, even in the most challenging of times. This spirit will continue to be echoed in our own user-focused philosophy at CoinMarketCap
The company recently launched a new Liquidity Metric and added derivative market data, new rating metrics, and analytics from trusted partners. Reportedly, it is planning to expand services by including trading products such as futures, options, lending, and more value-added data analytics and tools.
Reportedly, the CoinMarketCap’s founder Brandon Chez is stepping down as CEO and will remain an advisor. Current Chief Strategy Officer Carylyne Chan will become an interim CEO of CoinMarketCap.
Following the letter of CoinMarketCap’s new imterim CEO, the exchange will be contributing to to CoinMarketCap’s further development. Binance will share its expertise in various fields, varying from HR and managing to security and financial planning.
The possible impact on the crypto industry
The purchase of a crypto giant Binance is an important moment for crypto space, as it marks the shift of attention to the massive audience of individual investors. Although for a long time it is institutional investors who are called the most promising and influential participants of the crypto industry.
Besides that, the deal is already considered controversial and causes discussions within the community. As part of the industry people, including TRON’s Justin Sun, congratulate the acquisition, many crypto users express their doubts about the possible conflict of interests.
It is feared that since Binance is a biggest holder of Binance Coin (BNB) having access to competitors’ information allows it to manipulate data on rankings and volume.
For that reason, many crypto users already send RIP to the CoinMarketCap and encourage each other to turn to the competing crypto data providers.