CoinMarketCap took the wrong course in getting bought out by Binance? Changpeng Zhao’s shadow over the data aggregator could cause it to lose users to its competitors like CoinGecko. The latter has seen significant growth in the number of monthly visits.
CoinMarketCap: victim of Binance?
In April 2020, the acquisition of CoinMarketCap by Binance for $ 400 million had caused controversy in the cryptosphere.
Many observers had indicated that the purchase called into question the independence and impartiality of the data aggregator.
CoinMarketCap is now closely followed by its main rival, CoinGecko, in terms of the number of monthly visits.
According to an article in the daily The Ken, CoinGecko would have recorded 20 million visitors in October 2020 – a 135% increase in traffic since May 2020 – against 29 million visitors for CoinMarketCap – 4 times more visitors than its competitor since May 2020.
The 2 sites experienced peak visits in July 2020; CoinMarketCap did not, however, widen the gap between him and CoinGecko.
During this period, CoinMarketCap had placed the Binance Coin (BNB) at the top of the DeFi tokens, to later remove it, explaining that this was an error.
A biblical battle for data
On the announcement of the acquisition of CoinMarketCap by Binance, the CEO of CoinGecko, Bobby Ong, said at the time that it would be difficult for the platform to remain neutral and independent.
The strong demand for statistical data on cryptocurrencies and questions on ethics and neutrality of CoinMarketCap, favorably position CoinGecko to become the market leader.
NGO compares the balance of power between the 2 platforms to the battle of David against Goliath. The Ken qualified CoinMarketCap of an 800-pound gorilla as his rival is the outsider who has made his way to the top.
NGO added that it was only a matter of time before a larger number of crypto professionals, traders and investors, switched to CoinGecko.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Caryline Chan left CoinMarketCap leaving behind, among other things, the transparency efforts she tried to instill in the cryptosphere. The “mistake” that propelled BNB to the top of DeFi tokens, however, shows that efforts for transparency and neutrality must first be undertaken within CoinMarketCap itself. Nothing is lost, everything is recovered: CoinGecko is here to welcome the disappointed at CoinMarketCap, shunning CZ’s almost invisible hand on data.
Litecoin, welcome in the Silver Age