In the latest cryptocurrency news, the company Binance has acquired CoinMarket Cap in a high-impact merger. With minimal specifics, both companies released news of the acquisition on April 2, 2020. Working together, both CoinMarket Cap and Binance are sure to dominate the cryptocurrency world from here on.
What Exactly Does CoinMarket Cap Do?
This online platform was designed to track the changing market capitalizations of different cryptocurrencies, their trades, and current prices. Users can see up to date information every 5 minutes and is helpful for beginner and seasoned investors alike. A reputable website like CoinMarket Cap is an essential tool for cryptocurrency enthusiasts to follow regularly.
An easy way for investors to see snapshots of data from past market information; users can explore market fluctuation trends. Listing over 2,000 different cryptocurrencies around the world, CoinMarket Cap has approximately 100 million visits to the webpage each month.
What Does This Company Binance Do Exactly?
For those who are new to the digital finance world, Binance is the world’s largest exchange for cryptocurrency. Founded in 2017 by Changpeng Zhao, it quickly exploded on the cryptocurrency community as the largest exchange of digital currency. In addition to this quick success, they also have their own cryptocurrency token known as the Binance coin.
Delivering an online platform for the digital exchange of over 100 different cryptocurrencies, Binance has gained favor from many investors. Just last year, they partnered with the payment processing company Simplex to enable easier ways for users to obtain cryptocurrency.
How Will the Acquisition of CoinMarket Cap and Binance Affect Investors?
There is always speculation when 2 large entities come together in any industry, and this major coupling is no different. Many crypto enthusiasts have expressed concern about favoritism with the Binance coin now and how CoinMarket Cap will operate forward.
When recently asked, CoinMarket Cap’s CEO Carylyne Chan has emphasized that the website will still run independently of Binance. The vision to continue enhancing products and services for their users will not change regardless of the coupling with Binance. With the shared goal of providing access to cryptocurrencies around the world, this acquisition looks to be a positive one.
What Does This Mean for The Future?
This major move between these 2 crypto greats could mean that the digital finance industry is continually evolving. Both companies have consistent long-term goals in mind, hence making good business sense to partner up and move forward together. This acquisition could mean that each entity will ensure the other is operating efficiently for the benefit of the users. And for this reason, CoinMarket Cap and Binance will essentially grow together as the cryptocurrency market advances.
For a beginner investor, this major acquisition may not mean much. But for investors with previous market experience, the evolving of these digital entities could mean the start of something bigger. Big names like CoinMarket Cap and Binance can make a significant impact in the cryptocurrency world when they join forces. One can only wait and see how things will progress in the cryptocurrency world as it moves forward.