- Binance acquired CoinMarketCap data analytics site.
- For CMC, this will be commonplace, despite skepticism.
- This acquisition marks the first of two “big” Binance purchases this year.
Binance announced today that it has acquired cryptocurrency ratings site CoinMarketCap for an undisclosed sum, rumored to be up to $400 million. The acquisition comes as Binance intends to expand access to the cryptocurrency industry.
According to a press release, Coinmarketcap will continue to operate as an independent business, albeit with some notable changes. Coinmarketcap plans to expand its data to include derivatives, such as futures and options, that Binance has been offering since September 2019. CoinMarketCap founder and current CEO Brandon Chaz will step down as part of the move.
However, Chez remains extremely optimistic about the new move.
“I believe that of all the teams in the space that can acquire CoinMarketCap, Binance is one of the best options. They are a team that has shown time and time again that they care about their users and will go the extra mile for them “Even in the toughest of times,” Chez said.
Replace Chez as the interim CEO will be the current CSO Carylyne Chan.
CoinMarketCap was founded back in 2013 and has since become one of the most popular links to these cryptocurrencies, despite disputes over its inclusion in exchanges, which are known as flushing trading.
“For many, CMC is the landing page of our industry and, like Binance, has built its community on user trust. We plan to expand the capabilities of CMC and continue to create innovative, useful products for our users and the global community,” added CZ.
Binance's latest purchase came after a series of acquisitions in 2019. Last year, the exchange bought up a decentralized website with DappReview application data and the JEX crypto-derivative platform.
Binance purchase is controversial
However, many commentators are skeptical of the purchase.
Jonathan Leong, co-founder and CEO of BTSE, said: “If Binance controls the most famous third-party tool used by users around the world, this is clearly a strong conflict of interest.”
Other commentators were similarly concerned. “Personally, I am always skeptical of any deal that could in any way affect the ‘neutrality’ of any reporting system where one party (even potentially) has an interest in that system, like here, especially since I don’t even fully understand that they win for sure,” Jason Dean, an analyst at Blockchain-Media, told Quantum Economics.
“Perhaps I need more information on the intricacies of this and what the goals are, but my initial reaction would be caution and skepticism,” he added.