CoinMarketCap serves its consumers by collecting, aggregating, and distributing coin prices from exchanges on its platform. In short, it’s the crypto industry’s preferred data provider making it one of the largest distribution channels for information on cryptocurrency.
By starting off as a platform that displays the stats on cryptocurrencies by rank, CoinMarketCap has grown considerably – expanding into the domain of providing Resources and Tools for the use of individuals and organizations. Why this is important to note is because Binance, the largest exchange, will have gained access and control to the contents and resources provided on CoinMarketCap. What this could mean for CoinMarketCap consumers is they could face an unnoticeable bias towards Binance’s products through advertisements on the site.
Check out how we rate Binance in our Binance Exchange Review.
Is It a Good Sign for the Crypto Industry?
Depending on perspective, this is a good and a bad sign for the Cryptocurrency Industry. Many crypto enthusiasts have exclaimed their dislike for this particular acquisition.
While this brings more attention to other alternatives like coingecko, CryptoCompare, and coinpaprika, others believe that this breaks what the crypto industry was initially built on – decentralization.
On the other hand, the whopping $400m worth of cash and stock, makes it one of the largest acquisitions in the crypto industry. This acquisition brings more legitimacy to the space of cryptocurrency as it re-establishes the fact that the crypto industry is here to stay. Binance realizing and acting on the value of CoinMarketCap also proves that at the very least, Binance is in this for the long haul.
It is important to note that this acquisition would be the largest, but not the first for Binance. Since launching in 2017, the exchange has acquired several crypto driven companies all over the world. Wazirx, a crypto exchange in India, and China-based Dappreview, a data-driven evaluation platform also offering advertising services, and a cryptocurrency mobile wallet called Trust Wallet, which now serves as the native wallet for Binance’s DEX.
What Does it Mean for CoinMarketCap Users?
CoinMarketCap is known to be a popular resource for cryptocurrency investors of all maturity. It’s often the first stop on the journey for beginners to the space. The simple website design, layout, and concept make the information easy to understand.
As stated earlier, there is strong possibility that using CoinMarketCap’s distribution channel, Binance will boost the use of its own products, advertising them to CoinMarketCap’s current and future users. Having said that, the direction that Binance ought to take the business is in the realm of establishing trust in its current users by making sure the final product isn’t just a by-product of Binance.
One thing is certain — for all talk on the crypto industry being built on hype and speculation — this acquisition establishes that crypto is indeed a solid industry and is here to stay.