Foreign media: Binance plans to acquire well-known data service provider CoinMarketCap for $ 400 million

The Block was informed that Binance is in the final stages of negotiations to acquire CoinMarketCap (CMC), a well-known data provider in the cryptocurrency space.

Foreign media: Binance plans to acquire well-known data service provider CoinMarketCap for $ 400 million

People familiar with the matter told The Block that the cryptocurrency exchange is looking to pay up to $ 400 million for the transaction.

The acquisition includes cash plus stock, and the transaction is expected to be announced this week. Upon completion, this will be one of the largest acquisitions in the crypto space.

Other terms regarding the acquisition remain unclear.

Earlier this year, Binance CEO (CZ) Zhao Changpeng (CZ) said he was "very excited" about two acquisitions. CZ said at the time that these were "significant" and would have a "significant impact". The acquisition of CoinMarketCap may be one of these two deals.

According to data from SameWeb, CoinMarketCap (CMC) is the most popular provider of encrypted data aggregation services, attracting 207.2 million visitors in the past six months. On the other hand, Binance has attracted 113.8 million visitors in the past six months. CoinMarketCap traffic is 80% higher than Binance traffic.

People familiar with the matter told The Block that CoinMarketCap's ability to attract large amounts of traffic was one of the main reasons for the acquisition. CoinMarketCap was established in 2013 by the anonymous Brandon Chez in Delaware, USA.

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On the other hand, Binance is still the most visited cryptocurrency exchange with a traffic share of approximately 22% of the market. It goes hand in hand with Coinbase, which has a roughly 21% share.

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Binance has been buying wildly in recent years. Last year, the cryptocurrency exchange acquired at least nine companies, but only a few were publicly announced. These include wallet provider Trust Wallet, blockchain data startup DappReview; Indian cryptocurrency exchange WazirX and the lesser-known derivative platform JEX in Seychelles.

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Source: The Block Reasearch

In summary, to date, other large-scale acquisitions in the crypto market include Circle's acquisition of crypto exchange Poloniex for $ 400 million, Bitstamp's acquisition by Belgian investment company NXMH for approximately $ 400 million; Coinbase's acquisition of $ 120 million Earn.com; and Kraken's acquisition of Crypto Facilities for $ 100 million in 2019.

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