The world feels like movies right now. It feels like an apocalypse is just around the corner. With pandemic eroding business valuations and purchasing power, it seems like we are going to lose everything. As many as 6 million+ unemployments claims have been made in US alone thus far.
The crypto markets have been bearish long before that. For years, we’re seeing our portfolio post losses after losses. Most alts have lost over 90% valuation from all time high. During all this mess, a strange development happens. An unlikely business gets sold for $400 million. Let’s talk about it.
A website called CoinMarketCap was acquired by Binance for $400 million dollars. For those who have read this blog before, you may be aware that I’m mega bullish on Binance. But even I didn’t see this coming.
How can CoinMarketCap be worth this much? It’s probably because a crypto project can not exist without being on CMC. Even though the market as a whole is down as much as 80%, it is still worth over $200 billion dollars. CMC is the front-page of this $200 billion dollar market. A price tag of 0.2% of the market-size for the front-page of the market doesn’t sound too absurd.
It can also be seen as what we call “top of the funnel” in marketing. It is the first point of entry into a crypto project for a retail investor.
While this may be seen as a negative news as far as fairness of market is concerned as this may put off other exchanges from continuing sharing accurate data with CMC now that the website is owned by a competitor exchange, overall I continue to see this as a very bullish news for the overall crypto markets.