18 days ago 2 min read

Rumor: Binance Borrowed From CoinMarketCap To Repurchase CoinDesk

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A source from Blockworks claims that Binance Capital Management has inquired about acquiring CoinDesk, the most popular cryptocurrency news website. The insider revealed that CoinMarketCap is being used by Binance Capital Management as an agency to publicize the acquisition of CoinDesk.

A news portal that focuses on Bitcoin and other cryptocurrencies is called CoinDesk. Having been established in May 2013, CoinDesk is regarded as a news source for a variety of assets using online platforms like the website, social media, video, and podcasts.

Binance Capital Management is a company registered in the British Virgin Islands that owns a subsidiary that was purchased in 2020 for $400 million and the Delaware-based cryptocurrency research and statistics website CoinMarketCap (USA).

Even though it has been demonstrated that CoinMarketCap takes biased acts in favor of Binance, Binance is dedicated to allowing it run autonomously.

On the CoinDesk side, it has been up for sale since the end of November 2022, when the parent business Digital Currency Group and the lending division Genesis were experiencing financial difficulties and were being aggressively pursued for payment by creditors. Once Genesis filed for bankruptcy, Digital Currency Group was forced to think about selling some of its assets in order to pool its financial resources, including CoinDesk.

DCG may have made a mistake by selling Coindesk, though, as it has little to do with its core business. If DCG decides to stop the Genesis operation so CoinDesk and Grayscale can expand, Genesis' problems may force DCG to pick between its subsidiaries.

CoinDesk is valued at $300 million said by Ā Digital Currency Group, although the true sum is reported to be closer to $75 million. For under $500,000, Digital Currency Group 2016 repurchased ownership of the news site.

Said by a Blockworks source, Binance Capital Management has been actively contacting CoinDesk since February. Even so, the original negotiations between the two parties failed because the website was concerned that the reporter team would depart in droves if Binance decided to repurchase it. Hence, the biggest cryptocurrency exchange in the world is thinking about utilizing CoinMarketCap as the named company in this transaction.

CoinDesk CEO Kevin Worth said the company is looking into alternative methods of raising funds when he said that decisions have not yet been made regarding the news site's IPO in an interview with Blockworks.

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