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5 keys: Purchase of CoinMarketCap by Binance

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As we recently expressed, the world’s largest crypto exchange, Binance, bought from the also largest crypto market index tracking company. Why, could Binance be seeking to be a monopoly? Here we bring you the 5 key points to understand the purchase of CoinMarketCap.

Key Points of Purchase from CoinMarketCap

Just earlier this year, Binance CEO Changpeng Zhao “CZ” said there are two acquisitions in the pipeline that he is “very excited about.”

“These are important and will have a significant impact.” CZ said at the time. The CoinMarketCap deal could be one of those two deals, since it is a powerful ally, equivalent to the exchange.

, 5 keys: Purchase of CoinMarketCap by Binance, Forex-News

1- Which of the two arouses more interest?

One of the reasons why Binance may have rushed to buy from CoinMarketCap, is the fact that this portal arouses much more interest than the crypto exchange itself.

If we go to the Google Trends data, we can see that the searches are mostly focused on searching for CoinMarketCap than for Binance, by little, but higher. As in most of the world, CMC is more sought after than Binance itself.

, 5 keys: Purchase of CoinMarketCap by Binance, Forex-News
Source: Google Trends

On the other hand, CoinMarketCap is the most popular cryptoverse data aggregator, attracting 207.2 million visitors in the last six months, according to SimilarWeb. While Binance to 113.8 million visitors in its different portals in the last 6 months. In a nutshell, CoinMarketCap is 80% more than Binance’s.

Industry veterans are beginning to express that they see a future in which CMC could serve as a marketing channel for Binance, directing potential clients towards the world’s largest crypto exchange.

Amazon’s Alexa ranks CMC as the 570th most visited website worldwide in the last 90 days. That compares to Binance and rival Coinbase exchange at 1,688.

CoinMarketCap has more users than any other product in the crypto space. Despite the fact that its money generation mechanism is not as strong as Binance, it does have users, it is a very valuable platformCZ said.

2- Problems on your servers

The second key point in understanding the purchase of CoinMarketCap may be that Binance has had minor issues on its web portals recently. Server crashes, slow loads, and other types of errors,

Presumably due to the large number of users they have had daily, in addition to the different services that the company is offering in recent months. Like Binance Futures, Lending, P2P services, Binance Pool, Binance OTC. This has caused a slowdown in the speed of their web portals.

People familiar with the issue of slowness on the world’s largest crypto exchange platform expressed that:

“CoinMarketCap’s ability to drive a significant amount of traffic is one of the main reasons for the acquisition.”

3- Equal philosophies

One of the 5 key points to understand the purchase of CoinMarketCap has been expressed by the same CZ, which ensures that both have the same basic philosophies.

“CMC’s DNA is strongly aligned with Binance’s ethics and culture, from its integrity to its value of freedom, transparency and focus towards informing users.”

According to the vision of both crypto firms, they will be strengthened by this purchase (of about $ 400 million), “continue to grow and help in the adoption of crypto is the goal

CoinMarketCap has promised that the acquisition will not affect its operations. Well, they will continue to provide the highest level of information integrity, guaranteeing data accuracy and improving their classification methodologies.

CoinMarketCap intends to expand its information offerings to include trading products such as futures, options, loans and more tools and analysis of value-added data. Which is aligned with the new Binance crypto derivatives.

I think of all the teams in the space that could acquire CoinMarketCap, Binance is one of the best options. They are a team that has proven time and time again that they care about their users and will do their best, even in the most difficult times.“Said the CMC team.

4- Destroy your competitors

One of the key points to understanding the purchase of CoinMarketCap may be the fact that the two most wanted portals on the cryptoverse have come together. One is a website that gives information about which exchange has the most volume and trust, and the other is one of these crypto exchanges listed on this portal.

This news has sparked mixed reactions within the CEOs of Binance’s competitors. Some panic, and some enthusiasm. But, there is an intention in all of them to be aware of the change in the data in favor of Binance

Lennix Lai, director of financial markets at OKEx, said it was good to see such big deals in mergers and acquisitions in the context of a “bear market.”

“People might have doubts about whether or not CMC could maintain its independence later. It’s fair. But I think we should give the team a chance. “

On the other hand, Andy Cheung, former COO of OKEx expressed that the acquisition “not very good for the industry”Given the conflict of interest between the parties’ missions.

Honestly, how are you going to convince people that the ratings and volumes are true. When are you trading the largest crypto exchange and is it also probably the largest hodl of BNB?

5- Create a monopoly between Binance and CoinMarketCap?

We have come to the controversial question of the day. And one of the 5 key points to understand the purchase of CoinMarketCap. Is Binance and CZ building a monopoly?

Binance has been on a wave of acquisitions recently. The crypto exchange has bought at least 9 companies since last year, but only some of them were publicly announced.

  • Trust Wallet
  • JEX
  • WaxirX
  • DappReview
  • CoinMarketCap

“The CMC purchase is by far the largest we’ve done so far.”

CZ expressed.

Many on the cryptoverse already view with concern the constant expansion of Binance, not of its products, but buying crypto signatures left and right.

“CZ has told everyone that Binance is not here for the money, as they build something bigger and more meaningful for humanity.”

What do you think. Binance is building its own monopoly?



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