Binance to acquire CoinMarketCap for $400M
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Re: Binance to acquire CoinMarketCap for $400M
#2400 Million?! Maybe I'm missing something, but last time I checked, CoinMarketCap was just a stock ticker website for cryptocurrencies. Where is the value...?
Re: Binance to acquire CoinMarketCap for $400M
#3Congrats to the CMC team, but I fail to see how barring some special IP this makes sense at that valuation; they're an index that, while useful to an exchange, can't really be worth $400 Million in a current (albeit resilient) crypto Bear Market.
Binanace must be wanting to get rid of some Yuan as the CCP is just dumping Billions of it into the Market via bailouts, while people in Wuhan are supposedly coming [1] back online and wanting to 'Revenge shop.'
As for the idea of monopolizing such information, sites like Coingecko have been around for nearly as long as CMC, so it makes no sense. The other notable purchases Binance as made have been other exchanges, and a news site in China, which make actual sense to strengthen their position or get a foot-hold in other Markets in their core business as an exchange.
1: https://oklahoman.com/article/5659041/time-to-revenge-shop-c...
Re: Binance to acquire CoinMarketCap for $400M
#4400 Million?! Maybe I'm missing something, but last time I checked, CoinMarketCap was just a stock ticker website for cryptocurrencies. Where is the value...?
Huge amount of web traffic from crypto traders. I'd imagine they will direct those people to their exchange and make the money back in trading fees.
Re: Binance to acquire CoinMarketCap for $400M
#5400 Million?! Maybe I'm missing something, but last time I checked, CoinMarketCap was just a stock ticker website for cryptocurrencies. Where is the value...?
Huge amount of web traffic from crypto traders. I'd imagine they will direct those people to their exchange and make the money back in trading fees.
It already is the biggest Exchange by a large margin:
https://bitcoinexchangeguide.com/binances-crypto-exchange-ma...
You're telling me you think they'd drop $400 million in HOPES of just getting that back x-fold via trading fees via a convoluted Marketing scheme?
That's crazy, but hey... let me use CMC to see how many Alt's have a smaller Market cap than the recent $400 Million purchase price tag.
Edit: Forget that, that's a waste of time; I did some legwork on potential IP or exclusive deal and found this from 2 weeks ago:
> Crypto Briefing Announces Partnership Integrating Company's SIMETRI Digital Asset Ratings on CoinMarketCap
https://www.businesswire.com/news/home/20200317005241/en/Cry...
That makes more sense, if the assumption is that institutional level investment is primed to get in and CMC's SIMETRI rating system is the seen as the most trusted way in.
Which I have serious doubts given how so many Banks and Hedge Funds already have established systems in place. Fidelity being the most notable in the US for example, but are much larger outside of the US.
Re: Binance to acquire CoinMarketCap for $400M
#6Perhaps this isn't $400M in cash, but instead is $400M in binance-coins, which are virtually worthless, but make crypto startups appear much more valuable.
Re: Binance to acquire CoinMarketCap for $400M
#7400 Million?! Maybe I'm missing something, but last time I checked, CoinMarketCap was just a stock ticker website for cryptocurrencies. Where is the value...?
I have a theory: they [finance] have (more than) enough cash, and they don't want another exchange to acquire them [cmc] and have so much visibility.
It reminds me of ctrip buying Skyscanner, maybe soon a "buy with binance" button for each crypto? More visibility for their platform and BNB?
Re: Binance to acquire CoinMarketCap for $400M
#8Perhaps this isn't $400M in cash, but instead is $400M in binance-coins, which are virtually worthless, but make crypto startups appear much more valuable.
You mean this:
https://coinmarketcap.com/currencies/binance-coin/
Which would effectively give them close to 1/4 of the entire token supply, which they could dump at any time and disrupt Binances financials? That's worse than giving them cheaply printed fiat from all of these bailouts/stimulus.
Re: Binance to acquire CoinMarketCap for $400M
#9Waste of money
Re: Binance to acquire CoinMarketCap for $400M
#10Perhaps this isn't $400M in cash, but instead is $400M in binance-coins, which are virtually worthless, but make crypto startups appear much more valuable.
You mean this: https://coinmarketcap.com/currencies/binance-coin/ Which would effectively give them close to 1/4 of the entire token supply, which they could dump at any time and disrupt Binances financials? That's worse than giving them cheaply printed fiat from all of these bailouts/stimulus.
Could be... But paid in newly issued coins, over a period of 250 years, with a break clause exercisable by either party at any time...