We have some more exciting news from our friends at Binance this week. Earlier this week, Binance officially announced their acquisition of CoinMarketCap. CoinMarketCap is a popular resource aggregator for market exchange volume and cryptocurrency pricing information. Many speculated the deal to be value at around $400 million when first announced. However, it was later revealed that the deal might be structured in the form of equity and BNB, Binance’s token. Exact value has yet to be determined though.
What does Binance buying out CoinMarketCap mean?
According to The Block Crypto, many employees at Binance reported that the acquisition would bring a significant change in CoinMarketCap’s business model. The goal was to shift away from the ad-based model and into a subscription model. CoinMarketCap has since tweeted that they will continue to operate as a separate entity from Binance.
Binance notes that the acquisition of CoinMarketCap is to join “forces to make crypto more accessible worldwide”. Here’s an excerpt from their official announcement:
“Binance, the global blockchain company behind the world’s largest digital asset exchange, has recently completed the acquisition of CoinMarketCap, the world’s most-referenced cryptocurrency data tracking site. This landmark deal combines two of the most trusted brands in crypto and introduces some significant opportunities to grow the industry even further. CoinMarketCap stays committed to providing the most accurate, timely, and quality cryptocurrency data in the industry while benefiting from Binance’s expertise, resources, and scale.”
Although things will stay ‘business as usual’ for the team over at CoinMarketCap, the acquisition will result in its founder, Brandon Chez, stepping down as CEO. He will remain as an advisor while shifting focus to his family.
Keep moving crypto forward
“The core DNA of CoinMarketCap is strongly aligned with Binance’s ethics and culture, from its integrity to its value of freedom, transparency and user-focus.” -CZ Chang, CEO of Binance
Seeing these two giants in the cryptocurrency community join forces is definitely a step in the right direction. We here on the CoolWallet S team are proud to say that we have also had the privilege to work together with Binance in the past.
It’s great news that like-minded companies can work together to bring mainstream acceptance and awareness to the blockchain. Even through these challenging times, it is great to see that Binance still continues to drive cryptocurrency forward.