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How Big Is Binance? It’s About to Absorb Coinmarketcap in a $400m Deal

April 6, 2020


How Big Is Binance? It’s About to Absorb Coinmarketcap in a $400m Deal

The company better known for the homonymous and largest cryptocurrency exchange market out there has been on a secret revamp spree, acquiring a series of crypto-related startups that could play a determining role in the Binance ecosystem. 

While Binance’s exchange platform is indeed used by tens of millions of users every single day, the company led by Changpeng Zhao is also a leading blockchain network provider with its own top-shelf cryptocurrency BNB, a cryptocurrency incubator for third party enterprises, a development fund targeting innovative DLTs, and much more. 

Binance has been around since Q3 2017 when the platform had barely a million users. Give it a year, and Binance climbed to the top spot with over 15 million unique users worldwide, claiming that title of the largest and fastest-growing crypto exchange on the globe.  

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A brief history of Binance

Changpeng Zhao, the founder, and CEO of Binance Global was not a newcomer to fintech, working with forex firms, and brokers all around the world for over a decade before he founded the popular exchange.

Zhao was an early Bitcoin adopter and investor, and although he didn’t have much to begin with, Bitcoin’s extraordinary rise made him a key player in the scene. He worked for several other crypto startups like OKCoin and before Binance, in order to acquire the in-market knowledge that would make him the blockchain pioneer of our times that he become. 

Binance’s success didn’t necessarily rely on the crypto exchange services it offered, as there were already a couple major players in the sector. What made Binance stand out was its multidiscipline when it came to the crypto realm. 

Binance created a community around the exchange platform. It interacted with its users directly, at least in the beginning, and it offered so much more than just another crypto exchange in the field.

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From insider news to ICO announcements and new altcoin additions never traded before, all the way to the Binance academy, launchpad, BNB-based stablecoin, lower fees with BNB and more, Binance managed to create a circular economy out of its own community and services. 

From its very beginning, Binance was uncomfortable with anything settling or restricting, and that’s the main reason it changed its HQ from China to Japan, then to Taiwan, before finally residing in Malta, where it operates with a Malta Financial Services Authority approved license since February 2020.

Binance was not in the mood to put borders to its expansion and governments could practically do nothing about it, since the crypto regulatory domain is somewhat vague in the best-case scenario.  

BNB expands its reach to new heights

Besides the fact that the company managed to create a whole standalone US market with its own BOD and CEO in a matter of years, it didn’t take long before Binance started to expand its reach within the blockchain domain, acquiring wallet provider companies, KYC solutions, entire blockchain firms and now it even plans on buying, the landing web portal for new and returning crypto enthusiasts altogether. 

According to The Block, who got insider intel regarding Binance’s latest acquisition, the crypto giant is willing to part some $400 worth of USD in cash and equity in order to acquire the popular cryptocurrency tracker, and the deal is supposedly on the move as you read this. 

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Obviously, this is not Binance’s first acquisition, with the company already owning Trust Wallet, a popular multi-use crypto wallet, JEX, a Seychelles-based blockchain-based derivatives startup, WazirX, an Indian crypto exchange, and DappReview, a decentralized applications tracker and compare portal, similar to CoinMarketCap which would be simply additional to Binance’s trophy arsenal. 

Besides the fact that this is one of the largest blockchain deals of the year so far, it gives Binance the upper hand when it comes to crypto market metrics and data, considering that tens of millions of users rely their research, and by default their market incentive on CoinMarketCap numbers.

Now, I am not saying Binance will be tampering with these numbers but think of the possibilities of owning a website that basically indicates performance data subjecting individual cryptocurrencies as well as leading crypto exchanges while being both a crypto exchange and a cryptocurrency provider. 

Let me know your thoughts on Binance in the comments section below. Did you know Binance managed to grow so fast, so far in a matter of years? You can also hit me on Twitter.