Binance officially acquired Coinmarketcap for an undisclosed amount

While global markets are experiencing a difficult time amid the Corona virus pandemic, the cryptocurrency industry is getting stronger as large players have just created one of the major cryptocurrency acquisitions. most in history.

Binance, the world's largest cryptocurrency exchange, reached an agreement to buy CoinMarketCap, one of the world's largest cryptocurrency data sites, in an undisclosed deal. The company officially announced its acquisition today, April 2.

Changpeng Zhao, founder and CEO of Binance, said Binance and CoinMarketCap are very similar because they are both cryptocurrency providers, and share the vision of making cryptocurrency assets accessible. more accessible and useful to people around the world. CZ says:

“The acquisition will allow us to exert each other's strengths, further develop and instill industry transparency.

Zhao said the company negotiated with CoinMarketCap for several months before ending the deal in April. While the acquisition was rumored to cost Binance $ 400 million, Zhao said the company could not disclose the amount of the deal, as it was protected by an undisclosed deal. But it will not be less than $ 400 million, and it is the largest amount in a takeover of this fledgling industry.

CoinMarketCap will operate independently

While companies will work closely together, CMC will continue to operate as an independent business entity. Zhao emphasized that the acquisition will not change the independence of CMC from external stakeholders:

Binance is not related to the CoinMarketCap chart. CoinMarketCap is always committed to providing the most accurate, timely and quality cryptocurrency data in the industry while benefiting from Binance's expertise, resources, and scale.

However, CMC will immediately undergo some internal restructuring as part of the agreement. Brandon Chez, the founder of CMC, will step down as CEO and will be replaced by CoinMarketCap's current Chief Strategy Officer, Carylyne Chan, as interim CEO.

In addition to the leadership restructuring, CoinMarketCap will not have any changes in its team in the near future or at least for the next few months, Chan said:

There will not be any other major group changes at CoinMarketCap. People will stay and people are really excited about what is happening (...) I think there are no other major changes we see, certainly not in the next few months.

CoinMarketCap remains neutral on the project list

According to CZ, Binance has done its best to ensure that CMC can continue to adhere to its own listing method. The interim CEO said the company would not plan for any full listing changes:

We will comply with listing requirements and ensure that everything is fair and unbiased for anyone who wants to list anything on CoinMarketCap. Therefore, it will be our firm commitment that (...) will not change after acquisition.

What does this acquisition really mean?

While CMC will continue to operate independently to ensure neutral and transparent data, Binance will make a significant contribution to CoinMarketCap's next projects and developments, by 2020, Chan said:

The Binance exchange currently has at least 800 employees worldwide, expected to share its expertise in a number of areas such as finance and security. He emphasized that the acquisition will help CMC develop:

CMC will get a lot from Binance in terms of understanding how they run a team better. I think there are some really basic things around the security and financial issues that CMC will learn from Binance based solely on the fact that they have a bigger team than us and have replicated much more effectively.

The acquisition of CMC takes place about six months after industry reports claim that CoinMarketCap has been fully started, ie, continue operating with minimal financial resources. In October 2019, Chan reported that CMC has no plans to raise any money early and is continuing to start and scale up.

Cao Cao

According to AZCoin News

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