Executives of CoinMarketCap have released an open letter discussing the Binance acquisition. In it, soon-to-be CEO Carylyne Chan seeks to reassure users that the website will remain independent, and will put greater efforts into offering more services.
New Chief Executive Officer Addresses User Concerns
The reportedly $400 million purchase came as a surprise to the crypto community, yet Binance CEO Changpeng Zhao has stated that a deal had been in the works for a few months. In the letter, Chan addresses a number of concerns that the websites users may have. Most notably, she discusses fears that CMC may no longer operate independently. She states:
CoinMarketCap will continue to be run independently, as an independent entity, from Binance. Decisions will be made according to the best interests of CoinMarketCap, meaning that we will continue to develop products and services that benefit CoinMarketCap users, and continue working with partners and customers in a way that benefits them and brings the greatest value to them.
Chan also lists a number of new services that are under development. These include enabling user registration as well as the creation of watchlists and individual portfolios. A number of new data types may also soon be available.
Brandon Chez, CMC’s founder and current CEO has also announced in a separate letter that he is stepping down, and will “begin a transition to an advisory role.”
CoinMarketCap Clearly At A Crossroads
When Chez founded CoinMarketCap in 2013 it was the only player in the crypto data space. Today, there is no shortage of competition. Dozens of websites and apps offer highly detailed information on all-things-crypto. Thus, CMC must innovate in order to remain the go-to player for research and analytics.
Importantly, over the past year critics have accused CMC of providing unreliable data. The website relies largely on exchange self-reporting, which has resulted in wildly inaccurate liquidity and volume statistics. In fact, by some accounts as much as 95% of all cryptocurrency volume numbers are manipulated or false. CMC has acknowledged this problem and has created protocols to help improve reporting, but the challenge remains.
Data reliability issues notwithstanding, the new ownership by Binance is unlikely to cause serious concerns in the long-run. The exchange has a reputation for transparency and is widely trusted by most crypto investors. More notably is the fact that more than enough alternative data services now exist should CMC fail to deliver on its promise of independence.
Do you think CoinMarketCap will remain independent after the acquisition? Add your thoughts below!
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