Why Takeover by Binance May Influence CoinMarketCap

7 April 2020 | Updated: 7 April 2020

CoinMarketCap is among the first applications through which people engage as the cryptocurrency environment is being explored. Binance recently purchased the service provider, but as a consequence, the capacity to stay neutral is undermined. Bobby Ong, of CoinGecko, never really acknowledges that CoinMarketCap can be regarded as separate.

Will CoinMarketCap Be Influenced?
Allegations of data breaches have sometimes snagged CoinMarketCap on the wrong foot. However, while taking over the biggest retail crypto exchange, its transparency may be considered off.

Both firms are rejecting this theory, including Binance CEO Changpeng Zhao announcing that CoinMarketCap would keep functioning as a separate entity – not merged into Binance.

Yet CoinGecko’s CEO, Bobby Ong, doesn’t think it is possible. In quite a rare interview with Dex Blue, Ong gave his perspective as to what the purchase of CoinMarketCap implies for their role as a “free data aggregator”:

“Big amount is $400 million. This is one of the biggest crypto M&A so far and rivals the takeover of Poloniex. This explicitly underlines the tactical status of the aggregators of crypto data. I think it would be difficult for CoinMarketCap to maintain credibility and free after this takeover now that we are the largest free crypto data aggregator available in the market.

Cryptocurrency Data Reliability
Bloomberg, as well as Reuters, represents the global standard for institutional finance data. This data typically leads to retail sites, providing such valuable information for younger sites.

Only a bit of this complexity is reinvented in cryptocurrency. Every source of the data seems to have its statistical analysis. Services such as CoinMarketCap and CoinGecko have varying levels of stability.

Historically, CoinMarketCap was regarded as a fairly questionable data source and the Binance takeover supports that too often rhetoric.

CoinGecko, as well as Nomics, stay as one of a tiny community of separate companies providing simple applications in crypto for new users.

Nevertheless, the coverage of CoinMarketCap is far above all rivals. Moreover, independence on its own is impossible to hold them out. For the most part, Binance seemed true to its word, and ideally, CoinMarketCap stays at least free in terms of data aggregation. Any false data from CoinMarketCap can indeed be quickly picked up by other sites, despite the broad range of rivalry.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.