Binance has officially announced its purchase of CoinMarketCap “for an undisclosed sum”, thought to be up to $400 million in a cash and share deal
This is a serial of purchase Binance has done over the course an expansive first quarter for the Malta headquartered exchange. Since January 1st, Binance has announced the launch of P2P trading in Latin America supporting the Brazilian Real (BRL), Argentine Peso (ARS), Colombian Peso (COP), Mexican Peso (MXN) and Peruvian Sol (PEN). The exchange ecosystem has also launched a crypto-backed Binance credit card in association with Visa. Given the current slump in active retail trading, the purchase certainly makes sense from the perspective of driving traders to Binance’s expanded range of products and exchanges.
For CMC, the firm quickly became both the dominant data source and go-to platform for asset pricing in the industry and this purchase have stirred some reaction from the community:
The acquisition “is not very good for the industry” given the conflict of interest between the parties’ missions, like Binance’s exchange token, BNB, as an example.Andy Cheung, former chief operating officer at OKEx
If rival exchanges feel threatened by the possibility of Binance harvesting data from CMC, those firms will be “much less willing to provide low-latency and high-granularity dataNomics founder and CEO Clay Collins
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Sources: PressRelease Bianance