$400Min the current economic crisis is quite a fortune to anyone especially since it’s still not definite when the crisis will end. Just like the promised, the Binance confirmed the acquisition of coin market cap earlier on 2nd this month with rumored massive chipping of $400. This is a major deal in the Crypto community.
Experts in the crypto community, at list most of them, think the timing could not have been better. Especially. considering the recent hit on the market. Some think this is the perfect way to prove that the crypto community is still intact even with the crisis. However, there are those who think it’s was just a way to avoid a major blow for Binance in case things went sideways.
According to Changpeng Zhao, Binance CEO, the deal is support to help both companies grow and minimal changes will happen after the acquisition. Among the changes, the previous CMC CEO will be replaced by Carylyne Chan. Chan, according to David Wachsman, Wachsman’s founder and current CEO, has a very reputable history. This will help with improving CMC.
Opinions From Great Minds in the Crypto Community
Speaking to one of the news site, few iconic figures in the crypto industry had something to say on the matter.
Eric Benz, the CEO of a crypto exchange Changelly himself thinks the deal will bring positivity to the crypto industry. According to him, the timing for the acquisition worked perfectly timing to ease the tension from the Coronavirus invasion. Additionally, he said both parties would benefit from the deal considering both companies are ina related industry but different capacity.
Mike Alfred, CEO of Digital Assets Data, a Fintech firm had similar thoughts on the same. According to him,
“The deal is highly strategic on multiple levels and will put Binance in an even more powerful position relative to other exchanges when BTC heads back towards all-time highs.”
Contrary to the other’s opinions, Radix DLT CEO Piers Ridyard thinks differently. To him, the primary reason for the deal was improving data flow and acquiring new customers for Binance. Any other benefit would be nothing more than an icing on the cake. He said,
“While Binance will increase CMC’s brand equity as much as it can over the coming years, they will do that because of the huge benefit they reap in user acquisition and better data about the whole market. Another way of thinking about it is this vs. 10 years of Google Ad spending for Binance. $40M per year in ad spending is probably substantially cheap vs. their new cost per acquisition if Binance and the CMC team keep building the CMC brand.”
How both companies will benefit statistically
Considering the traffic conversion CoinMarketCap is almost double the price, Binance looks like it could benefit more from the deal. However, this might not explicitly be the case at hand. When CMC penetration in the US market is higher, Binance, on the other hand, has the rest of the globe.
CMC has just over 5M users in the US alone Binance has around 1.9M visitors form the same market. This is about 2 and a half times more which means this could be the chance for Binance to penetrate the market.