- Binance may acquire CoinMarketCap for $400 million.
- The deal may lead to unwanted consequences for the industry.
One of the world’s largest digital exchanges Binance is in talks to acquire a cryptocurrency research CoinMarketCap for $400 million, according to the cryptocurrency media outlet The Block.
CoinMarketCap is one of the biggest analytical resource and cryptocurrency market data providers that generate a large amount of traffic as traders and investors flock to the website on a daily basis to check the market. The details of the deal or the reasons for the acquisition are not disclosed,
According to the statistics provided by the digital market intelligence platform Similarweb, almost 24 million users visited the Binance website, while CoinMarketCap had 37 million, which means that traffic generation may be one of the factors behind the decision.
Notably, the head of Binance Changpeng Zhao announced two major acquisitions back in January. He did not provide any details but mentioned that they would have a significant impact.
Community is concerned
The cryptocurrency industry participants showed a mixed reaction. Many Twitter users noted that the deal may be good for Binance, but damaging for CoinMarketCap.
No disrespect to Binance but this isn’t good at all for crypto. CMC is like the independent listing site for all crypto. When you have a crypto exchange / company take it over, who’s to say they will not have implicit biases when listing projects? Whatever tho, money talks right, a user SpydrZero (@SpydrZeroBTC) writes.
Also, the market players are concerned that the acquisition will lead to significant growth of coin listing costs.
Neither Binance nor CoinMarketCap has reacted to the rumors circulating in the net.
CoinMarketCap was founded in 2013 in Dover, Delaware. Now it is the largest retail crypto portal.