Crypto Community Accused Binance of Manipulating Market with Acquisation of CoinMarketCap

Umme Haani
Umme Haani is a writer for Thecoinrepublic. she contributes a researched piece on cryptocurrencies and updates. Umme is an aspiring engineer who immensely enjoys writing and technical writing brings the best of both worlds under one roof for her.
  • Binance unveiled its acquisition of CoinMarketCap (CMC) on April 2, 2020.
  • Since the exchange last announced its acquisition, it has received a mixture of opinions from both the crypto experts and the users.
  • Users doubt if the CoinMarketCap’s acquisition is an indication of market manipulation.

The world’s largest crypto exchange Binance unveiled its acquisition of CoinMarketCap (CMC) on April 2, 2020. The acquisition appears to have cost the exchange a figure close to $400 million. CoinMarketCap is the leading price-tracking website for crypto coins. It takes pride to be the world’s most trusted source for crypto market capitalizations and pricing. Accuracy of information is one of the impressive attributes of this website. 

Since the exchange last announced its acquisition, it has received a mixture of opinions from both the crypto experts and the users. For the crypto community, it is a matter of concern the way Binance’s ideology of overpowering is gaining momentum in the crypto industry. 

Crypto Experts React Skeptically 

Binance CEO invited feedback from the community, as the exchange observed a large crowd to be dubious regarding its acquisition. Changpeng Zhao took to Twitter on April 22 to know what improvements the community expects from the CoinMarketCap. To this, the co-founder of BitInstant exchange, Charlie Shrem, replied in affirmative and tweeted ‘A lot’. He further added that it is however great up until now. 

Bobby Ong, co-founder of the cryptocurrency ranking website, CoinGecko while interviewing with My Two Gwei happened to state his views regarding the crypto data website’s acquisition. He believes it will prove tougher for CoinMarketCap to maintain neutrality and independence after it has been acquired. And if that happens, they will stand its place to be an independent crypto data site on the market.

Eric Benz, Changelly exchange CEO appeared to side with the idea of an acquisition. He believes it is beneficial to both parties. Digital Assets Data’s CEO, Mike Alfred, appeared to share a similar perspective. He claimed Binance as the current strongest company in the crypto industry.

Mark Jeffer, co-founder of the Guardian Circle and an influential entrepreneur expressed his concern for the CoinMarketCap. He tweeted Binance’s acquisition seems similar to ABC acquiring Neilson even though it might prove to be great for CMC.  Mark points out that CMC has always strived for impartiality IMHO and hence he is unsure if the same will continue for it under Binance.

Users doubt if the CoinMarketCap’s acquisition is an indication of market manipulation

Doubtfulness regarding the acquisition is all around. The opinions have not just been limited to the crypto community members, users have appeared to share larger concerns.

Twitter User Lucy Irving wrote CZ will do as he pleases regardless of the opinions of the community. And CMC running under Binance is doing nothing but creating space for market manipulation in the near future.

Another user Pierd Ridyards believes Binance has acquired CoinMarketCap mainly for user acquisition and data flow. He wrote Binance besides having access to the complete view of the crypto buyer, they will be able to save on their google ad spending too. 

Questions have arisen with respect to decentralization as well. User ‘rafmann’ doubts CZ talking about decentralization. He tweeted that Coinmarketcap is supposedly a neutral and decentralized reporting platform, and hence conflicts of interests are clearly evident. 

CrytpoKanoon conducted a poll on whether Binance’s acquisition is good news or bad news to the industry. To this, a user replied that it is nothing but a monopoly by Binance. 

Since binance announced to acquire coinmarketcap in $400 Million, it has became one of the hottest topic in cryptoverse, raising allot of doubts and scepticism, its yet to see how this deal is going to affect cryptocurrency market further.

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