Binance All Set to Acquire Coinmarketcap for a Deal Worth $400 Million
The deal of taking over Coinmarketcap in its final stages as per the official reports coming out from Binance. The world’s leading cryptocurrency exchange will ink the deal for a price of $400 million, this was told by people involved in this deal to the “The Block”. It is expected the cash-and-stock deal will be brought to the public domain later this week. If the deal is locked, then it would be the biggest in the entire crypto space. However, the terms and conditions of this largest acquisition deal are not clear.
The Block contacted both CoinMarketCap and Binance for comments and updates on how this deal will go through. Earlier this year, the CEO of Binance, Mr Changpend told The Block that they are two big acquisition deals in pipelines, and they are quite excited about it. He further added that these deals are “major” and will have a “significant impact.” He believed that CoinMarketCap acquisition could prove a big game-changer for the company.
One important thing that you need to know here, is that the CoinMarketCap has not been involved in external funding raising activities for the company, and is “entirely bootstrapped,” Carylyne Chan, CoinMarketCa’s chief strategy officer. He told this to The Block, last October. Chan said at the time. “We don't plan to raise any funds soon; we can continue bootstrapping and scaling at this point,"
CoinMarketCap is the most popular crypto records aggregator, drawing 207.2 million traffic within the ultimate six months, consistent with SimilarWeb. Binance, on the opposite hand, drew 113.eight million site visitors inside the last six months. CoinMarketCap's site visitors are 80% greater than that of Binance's.
People acquainted with the matter advised The Block that CoinMarketCap's potential to drive a widespread amount of traffic is one of the major motives for the acquisition. CoinMarketCap was founded in 2013 via the nameless Brandon Chez in Delaware, U.S.
Binance, on the opposite hand, stays the most visited crypto change with approximately 22% visitors share. It is in a neck-and-neck opposition with Coinbase, which has a share of approximately 21%.
Binance has been on an acquisition spree. The crypto change was acquired as a minimum of nine companies last year, but only some were introduced publicly. These include - pockets issuer Trust Wallet, blockchain statistics startup DappReview; Indian cryptocurrency change WazirX and little-known Seychelles-based derivatives platform JEX.
Overall, other biggest crypto deals so far consist of Circle’s acquisition of Poloniex for $400 million; Bitstamp’s acquisition via Belgium-primarily based investment firm NXMH for around $400 million; Coinbase’s acquisition of Earn.Com for $120 million and Kraken’s acquisition of Crypto Facilities for $100million in 2019, amongst others.