Binance Makes Major Move With CoinMarketCap Acquisition

Despite the fact that traditional markets are experiencing hard times as a result of the COVID-19 pandemic, the crypto market is displaying signs of growth and strength. These qualities have made their way into the drivers of the industry as well, such as Binance, which just made a major move with its CoinMarketCap acquisition.

Date: 
April 07, 2020
Read time: 
2 minutes

Binance Makes Major Move With CoinMarketCap Acquisition

Author: Dylan B
Date: 
April 07, 2020
Read time: 
2 minutes

Despite the fact that traditional markets are experiencing hard times as a result of the COVID-19 pandemic, the crypto market is displaying signs of growth and strength. These qualities have made their way into the drivers of the industry as well, such as Binance, which just made a major move with its CoinMarketCap acquisition.

Despite the fact that traditional markets are experiencing hard times as a result of the COVID-19 pandemic, the crypto market is displaying signs of growth and strength. These qualities have made their way into the drivers of the industry as well, such as Binance, which just made a major move with its CoinMarketCap acquisition.

This acquisition comes just in time as well. Prior to Binance’s choice to purchase the company, CoinMarketCap was dealing with a lack of finances that was impacting its operations. With Binance’s support, it will be exciting to see these two companies grow. 

CoinMarketCap, one of the biggest crypto data websites, and Binance, one of the world’s leading exchanges, announced this acquisition on April 2nd. However, this acquisition does not mean that will massive changes will be made on the existing platform. Rather, the pair will work together to provide further value to the industry. 

As Changpeng Zhao, the CEO of Binance, explained in a statement to CoinTelegraph about the acquisition: 

"The acquisition will enable us to build on each other's strengths, and further grow and instill transparency in the industry...Binance has no bearing on CoinMarketCap rankings. 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.”

CoinMarketCap will still operate as it did prior to the acquisition, with some minor alterations. Rather than sticking with the current business structure, the current CEO of CoinMarketCap will be stepping down and CoinMarketCap’s Chief Strategy Officer, Carylyne Chan, will be taking over as an interim CEO. Chan also spoke out about what to expect as the company moves forward: 

“Other than that, there won't be any other major team changes at CoinMarketCap. Everyone is going to stay on and everyone is really excited about what's happening. [...] I think that no other major changes that we see, definitely not in the next couple of months… We’ll stick to our listing requirements and make sure that everything is fair and unbiased to anyone who wants to list anything on CoinMarketCap. So that will be our firm commitment that [...] will not change following the acquisition.

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As the two companies move forward, CoinMarketCap expects to learn a lot from Binance, from business strategy to security as the pair grows together. Chan also touched more upon this topic: 

We are going to get a lot from Binance in terms of understanding how they're running a better team in terms of best practices. I think there are some really basic things around security, finance that we will learn from Binance just based on the fact that they have a way larger team than us and have scaled out much more efficiently.

This acquisition comes just in time as well. Prior to Binance’s choice to purchase the company, CoinMarketCap was dealing with a lack of finances that was impacting its operations. With Binance’s support, it will be exciting to see these two companies grow. 

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

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