Will CMC’s Loss Be CoinGecko’s Gain?
Neither CoinMarketCap nor Binance have formally confirmed the buyout at the time of writing. However, some industry observers are already saying that such an acquisition would represent a conflict of interest.BREAKING: Binance set to acquire CoinMarketCap for as much as $400 million. This likely makes it one of the largest acquisitions in crypto. https://t.co/VcleLkqsMS
— Larry Cermak (@lawmaster) March 31, 2020
In the article linked to above, the author and tweeter claims that the two companies are going to finalize the acquisition this week. It goes on to question the motives behind the takeover:Do you need more reasons to start using @coingecko instead of CoinMarketCap?#hive #cryptocurrency #Crypto https://t.co/p4dtKIdzHT
— toofasteddie (@thecryptorunner) March 31, 2020
“Frankly, I do not see why BINANCE should be so interested on this but, besides the possible incomes for advertising, to get the power of manipulating the information received by the crypto users.”Others agree that the takeover would represent a clear conflict of interest. Some expressed concern over the amount of power the move would give Binance. The acquisition, and at least eight others mentioned in a January Binance newsletter, suggests that the company is trying to buy up interests in as many corners of the industry as possible.
Meanwhile, Larry Cermak, stated the following.Well I'll be darned…
— Wendy O (@CryptoWendyO) March 31, 2020
I understand the business aspect of this but its always worrisome to when companies have too much power and ownership. https://t.co/KvVrj93NEj
I wonder how Binance is going to deal with the obvious conflict of interest. CoinMarketCap will no longer be impartial (even though they didn't already have a good reputation). What CoinMarketCap kills at though their SEO. They drive traffic from a ton of non-crypto folks
— Larry Cermak (@lawmaster) March 31, 2020
Binance Deal Unlikely to Dislodge CMC at the Top
With an Alexa rank of 570, CoinMarketCap receives far more traffic than any other cryptocurrency price reference site. Its nearest competition, CoinGecko, lags way behind at 7,304. Although people have already come out against the supposed conflict of interest, the impact on the above Alexa rankings will likely be minimal. As Larry Cermak identifies above, CoinMarketCap does exceptionally well at attracting non-industry folks to it. If someone needs to check the Bitcoin price quickly, they’ll likely end up at CMC. Those discerning enough to understand the ownership issues discussed above are already likely to be users of CoinGecko too. Some users may well boycott CMC, but it seems unlikely that it will be in the volume needed to displace the site as the No. 1 in terms of cryptocurrency price referencing services.Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.