Crypto Data Analysis Website CoinMarketCap to Be Acquired by Binance for $400 Million
Cryptocurrency data provider CoinMarketCap is set to be acquired by the top crypto exchange Binance for as much as $400 million, according to a report from TheBlock.
According to the report, Binance and CoinMarketCap are in the last stages of the deal that’s going to be announced this week. This would make the 5th acquisition by Binance. It has recently acquired the Beijing-based platform for data analytics of decentralized apps (DApps), DappReview, the mobile crypto wallet Trust Wallet, the futures and derivatives crypto exchange JEX and WazirX, the Indian exchange.
More than this, Binance has also invested in the China-based news agency Mars Finance, not to mention it acquired today the South Korean crypto startup BxB in order to open a local exchange in South Korea.
Will CoinMarketCap Remain Neutral?
In the past, CoinMarketCap has been called out for adding high levels of wash trading from crypto exchanges. It has around 37 million viewers each month, but now the question is if it’s going to remain neutral after the acquisition.
What’s sure is that the rumored deal can make the crypto industry more centralized, seeing CoinMarketCap is the largest data source in the crypto space, whereas Binance is among the biggest crypto exchanges in the world. Here’s what the co-founder and CEO at BTSE crypto exchange, Jonathan Leong, thinks:
“If Binance controls the most well known third party tool used by users around the world, this is clearly a strong conflict of interest.”
Jason Dean from Quantum Economics says that:
“Personally, I am always sceptical of any deal that can in any way affect the ‘neutrality' of any reporting system where one party (even potentially) has an interest in that system as here, especially as I'm not even entirely clear what they stand to gain precisely.”
Many other commentators are worried. Jeroen Hesp, the Citizen’s business development manager, wrote on Twitter that Binance may skew CoinMarketCap’s data and ads towards its IEOs and own token.
Massive Traffic to Be Expected for Binance
At the moment, coinmarketcap.com visitors are being redirected to crypto.com if they want to purchase cryptocurrencies. In case the acquisition goes through, the traffic on binance.com is expected to massively increase, seeing all coinmarketcap.com visitors will come to Binance’s website. According to an anonymous source, the deal between the crypto exchange and the data marketplace platform will be made in cash and stock.