Binance acquiring CoinMarketCap for $400 million

Binance acquiring CoinMarketCap for $400 million

  • Recent reports claim that Binance is in the final stage of negotiations for the acquisition of CoinMarketCap.
  • The reports say that the exchange might pay as much as $400 million for the crypto price tracking site.
  • This will be Binance's 5th massive acquisition, and while many think that it will be helpful for the exchange.

One of the world’s largest cryptocurrency exchanges, Binance, is now pursuing a new massive deal. According to a recent report, Binance is finalizing the acquisition of the world’s largest crypto data tracking website, CoinMarketCap. The deal will, reportedly, cost the exchange $400 million.

At this point, it appears that the deal is about to take place. It is only a matter of time when the exchange itself will release the details. The acquisition announcement will likely come out by the end of the week, as reported by The Block.

Furthermore, the acquisition of CoinMarketCap will be Binance’s fifth major acquisition. Previous massive acquisitions that made headlines included the Beijing-headquartered data analytics platform for decentralized applications, DappReview. Apart from that, Binance also acquired a major Indian crypto exchange, WazirX, a futures and derivatives trading exchange JEX, a crypto wallet for mobile, called Trust Wallet. Also, it made a major investment in China’s news agency, Mars FInance.

After the news broke out, many have started calling the acquisition ‘one of the largest acquisitions in crypto.’

Will CoinMarketCap still be reliable?

However, a large part of the crypto community seems to be rather concerned about the move. A Twitter user called Ivan on Tech recently posted a pole on the platform, asking about the community’s input on the matter. He asked for public opinion about the impact that the acquisition may have on CMC. The community got to choose between the positive impact, explained through the potential for great synergy, or a negative one, as in losing trust in CMC data.

At the time of writing, over 1,000 people have voted, choosing between the two options. The results are clear — the community worries about the future trustworthiness of CoinMarketCap.

Nearly two-thirds of the individuals who voted (64%) have said that they expect that CMC will not be trustworthy in the future.

But, there are many who believe that this is still a very smart move from Binance’s perspective. They claim that data is everything, and joining a data site to the Binance ecosystem is bound to help the exchange. In fact, it may even help its BNB coin, as Binance itself grows stronger, as the community speculates.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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