As the Coronavirus spreads around the world, global markets are experiencing difficult times, the digital currency industry is gaining strength, and we have recently seen the news of one of the largest mergers in the history of the industry. According to CoinTelegraph, Binance, the world’s largest digital currency exchange, has agreed to buy CoinMarketCap, the website with the most referrals in the field. Details of the deal and its price have not been released. The change of ownership was officially announced on April 2.
Changpeng Zhao, CEO, and founder of Binance Exchange said the two companies have many similarities and both provide access to digital currencies for users. He said the two companies aim to make it easier for people around the world to access digital currencies.
This transaction enables us to use each other’s strengths for progress and increase transparency in this area.
Zhao also said that negotiations for a contract had taken months. According to rumors, Binance has paid about $ 400 million to buy CoinMarketCap. However, while stating that the contract contains a clause that does not disclose details, Zhao said that he could not specify the amount to be paid.
Despite the close collaboration between the two companies, CoinMarketCap will continue to operate as an independent business. Zhao said the shareholders of CoinMarketCap still maintain their independence.
Binance has no involvement in the CoinMarketCap rankings. CoinMarketCap will continue to provide the most accurate, up-to-date and high-quality digital currency data, and will also use the expertise, financial resources and scope of Binance activities.
At the same time, with the termination of the sales contract, CoinMarketCap has undergone structural changes. Brandon Chez, co-founder, and CEO of CoinMarketCap, will step down and be replaced by Carylyne Chan. Chen has previously served as Senior Strategy Manager at CoinMarketCap and is now the company’s interim CEO.
Despite changes in management, CoinMarketCap will not undergo any other structural changes, at least not in the near future, and will not change its workforce. Chen says:
Other than a change of management, there will be no other change in the CoinMarketCap team. Everyone is happy with what happened and will continue to work on their current position. I don’t think we will have another structural change; at least for the next few months, I’m sure that will not happen.
According to Chen, Binance has done his best to keep the CoinMarketCap asset-oriented, as it was before. In an interview, he said that CoinMarketCap does not plan to change this trend in the near future. He added:
We will continue to adhere to our current financial record. We make every effort to ensure that the conditions for anyone who wants to register something in CoinMarketCap are fair and without direction. It will be our commitment not to change this procedure despite the sales contract.
Chen also said that CoinMarketCap will operate independently to provide reliable and transparent data. Binance will also work extensively with them to develop the company’s projects in 2020.
Binance currently has more than 800 employees worldwide, many of whom specialize in a number of areas, including economics and security. While acknowledging that the acquisition of CoinMarketCape by Binance will lead the website to take further steps, Chen added:
We learn a lot from Binance about how to run a team better in executive affairs. I think there are a lot of basic things about security and economics that we can learn from Binance , because their team is much bigger than our team and their efficiency is higher than ours.
Six months ago, there were reports of a lack of CoinMarketCap funding. According to these reports, the company continues to operate only with its existing capital. In October 2019, Chen said that CoinMarketCap continues to operate in the same way and does not intend to raise capital.