Binance officially acquires CoinMarketCap
By Rafał - 2020-04-02
Binance has officially announced its acquisition of CoinMarketCap, the popular aggregator for exchange volume and cryptocurrency pricing data. Earlier this week, the first sources said at that time that the deal could be worth as much as $400 million at least. The deal closed on March 31st, according to official Binance CEO Changpeng Zhao CZ who shared his point of view:
"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. 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"
Zhao also expressed that Binance plans to empower CoinMarketCap to continue to build innovative, useful products for its users and the global crypto community. Subsequent reporting has revealed new details about the nature of the acquisition. A source with knowledge of the deal told The Block that it was structured primarily in the form of equity as well as BNB, the token issued by the exchange. The first information stated that the deal has been in the works since Nov. 2019 and still discussed until now.
Potential upcoming changes
Several employees at Binance shared that the firm is considering a significant change in CoinMarketCap’s business model, shifting away from an ad-based model to a subscription model, which will charge exchanges to be included on the site. Additionally, secretive CoinMarketCap founder Brandon Chez is stepping down as CEO while the current CSO Carylyne Chan has taken on the role of interim CEO. CZ confirmed Wednesday that Binance is launching a crypto mining pool and that a new crypto-to-crypto exchange is being launched in South Korea.