Will Coinmarketcap manipulate data in favor of Binance?
Will Binance turn into a monopolistic-dragon, and what will its users gain from it?
On March 31, the Binance cryptocurrency exchange made the biggest and the most
impressive deal in the history of the crypto industry. It acquired CoinMarketCap, the
most popular service monitoring cryptocurrency rates. The price paid for it was
record-breaking – $400 million.
Binance has managed to buy a platform with the audience twice as big as its own.
1200000 people visit CoinMarketCap daily. No cryptocurrency platform has bigger
than this. For example, Binance, one of the most popular cryptocurrency exchanges,
is visited by just 766000 daily.
Binance bought Coinmarketcap to increase the number of potential clients. If you
buy the largest crypto data aggregator, you have an extremely powerful tool to
affect the target audience by.
But a reasonable question arises: will coinmarketcap preserve its status of an
independent platform providing real data? Can we believe the service that is in the
hands of the market's key player? Is it a ground for a conflict of interest?
Here are some of the concerns you might come across:
Jonathan Leong, co-founder and CEO of BTSE, told, "If Binance controls the most
well-known third party tool used by users around the world, this is clearly a strong
conflict of interest."
Jason Deane, analyst at Quantum Economics, said, "Personally, I am always
sceptical of any deal that can in any way affect the 'neutrality' of any reporting
system where one party (even potentially) has an interest in that system as here,
especially as I'm not even entirely clear what they stand to gain precisely."
Eugene Ng, who is currently "Builder, Hustler & Connector at Matrixport" added that
"[the acquisition], just defeats the purpose of having a balanced and neutral index
The latest opinion seems to be a key one: Binance has managed to make the most
important acquisition for a significant market player to gain a decisive advantage.
Getting Coinmarcetcap means not only a large target audience for Binance but also
a tool to influence the largest data aggregator in crypto.
The position like this is sure to compromise CoinMarketCap sooner or later. But until
it happens, and Coinmarketcap is popular, Binance will take a chance to exploit the
source and make a leap forward, leaving all the current competitors behind. It will
be the most important step for Binance on the path of conquering the market.
That’s why they bought CoinMarketCap.
What does it mean for a regular customer? We will hardly have a better chance to
join the action that is happening before our eyes. When else can be a better time to
register on Binance and to start monitoring BNB Coin rate, cryptocurrency by
Binance? Moreover, the competence of the company’s top managers indicates that
the capitalization of the company will increase. To sum it up, it’s now the company
to pay close attention to.
And, of course, we cannot leave our readers without a bonus! You can register on
Binance via our referral link that provides you with a 20% commission return.
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