It has been reported on several news sites that the global crypto exchange firm, Binance, has taken over CoinMarketCap in a deal worth about $400 million. However, the certainty of the news remains a question as it remains a rumor.
Reportedly, the main reason for the CoinMarketCap takeover by Binance is to enable the latter to draw traffic and users from CoinMarketCap to its trading platform. According to researchers, CoinMarketCap has an audience of around 2.5 and 5 million daily. Binance, however, equally enjoys a high amount of daily visits averaging about 1-1.5 million visits daily on its website.
CoinMarketCap takeover by Binance majorly is because of failed attempts by the wallet provider to break even in western Europe and English speaking parts of the world, which has been frustrating. Critically analyzed by the amount of traffic generated, Binance USA gets a daily visit of around 20,000, unlike Coinbase, a close competitor that records about 1 million visitors daily.
The numbers are synonymous with Binance European target Binance Jersey’s 2,000 daily audience compared to Bitstamp over 100,000 daily audience. Strategically, Binance has enabled USD, Euro, and GBP onramp for its exchanges to improve the audience in these regions.
With CoinMarketCap takeover, Binance has demonstrated readiness to gain traction and draw massive traffic in these regions as CoinMarketCap is valued at $25 million and was taken over for $400 million.
Binance expands with CoinMarketCap takeover
The Malta-based exchange firm has taken several steps to broaden its client base in the world apart from its CoinMarketCap takeover. The firm launched a crypto-backed Binance credit card alongside Visa. The firm also intends to create a blockchain research institute in China, a 50 million fund with WazirX called “Blockchain for India” to incubate and invest in blockchain projects and startups, etc.
With a drop in the number of retail trading, CoinMarketCap takeover is one that could bring the intended result, driving traders to Binance’s continuous growing range of products and exchanges.
Binance takeover claims could be true
The CoinMarketCap takeover rumors appear to be real with sources from CoinMarketCap announcing an acquisition via Twitter.
Binance and CoinMarketCap just announced an acquisition. As a team, we will continue to make crypto accessible for all. See the statement here: https://t.co/kL6tmSqeHg
— CoinMarketCap (@CoinMarketCap) April 2, 2020
CoinMarketCap also retweeted Binance tweet about a live video on Twitter where questions about the acquisitions are going to be answered.
Join us tomorrow (Friday, April 3rd) at 3AM UTC, for a live video #AMA with @cz_binance, here on Twitter!
Have a question about #Binance's recent acquisition of @CoinMarketCap? Or maybe want to know more about #BinanceMiningPool?
Comment your questions to get them answered! ⬇️ pic.twitter.com/kbci8iRTFd
— Binance (@binance) April 2, 2020
Binance also tweeted earlier on Thursday that they are joining hands with CoinMarketCap to make crypto more accessible, a more pleasing way to say ‘takeover.’
Binance and CoinMarketCap just announced an acquisition. As a team, we will continue to make crypto accessible for all. See the statement here: https://t.co/kL6tmSqeHg
— CoinMarketCap (@CoinMarketCap) April 2, 2020
