Binance CEO, Chanpeng Zhao, is taking rounds of criticism coming from the crypto community at large, owing to his crypto exchange’s acquisition of popular coin rating platform, Coinmarketcap (CMC). Amid the various critics that have voiced disappointment for such a move by Binance, is Jay Hao, CEO of Binance’s rival cryptocurrency exchange, OKEx.
The controversy stems from the time that Binance initially announced a possible acquisition of Coinmarketcap, which took place within the last week. Particularly interesting and the fact which attracts more attention is the $400 million acquisition price tag.
At the time of the official announcement, Coinpedia relates that Binance bids for CoinMarketCap at a price tag of $400 million and this is suspected to be one of the two “big acquisitions” initially announced by Binance CEO early into the year. Coming to materialize, Binance acquires CoinMarketCap to work within the Binance ecosystem as a separate entity and this throws the crypto community into a state of controversies and uproar.
Jay Hao’s Take: BNB Token Buyback Or CMC Acquisition, Which Suits Binance More?
Perhaps the first popular figure to take a backlash at CZ for the deal, making it controversial, happens to be Jay Hao, CEO of OKEx. According to a tweet by Hao, a better move for Binance is to record a $1 trillion valuation and then acquire CMC at $4 billion. He further maintains that it’s better for Binance to spend the proposed $400 million to perform a BNB token buyback rather than a CMC acquisition.
This continues a rivalry springing forth recently between both CEOs, in which Changpeng Zhao blocks Jay Hao on Twitter. In this evident struggle for dominance and survival of the fittest, the rival cryptocurrency exchanges deliver similar yet contrasting innovations to better serve their respective customers.
Time To Let Go Of CMC?
Numerous other criticisms point to the fact that it appears that a rival coin rating platform should now be considered in the stead of Binance’s CMC. With names like Coingecko mentioned as possible alternatives, respondents think CMC trails a path to massive and evident “over-chilling” of Binance’s native cryptocurrency BNB and other Binance-related coins.