CoinMarketCap, which is one of the most popular crypto websites and perhaps the #1 place to look up crypto market data, has apparently gone through some tumultuous internal affairs. The original CoinMarketCap leadership team has abandoned ship, i.e. quit, including interim CEO Charylyne Chan, Vice President of Operations Spencer Yang, Vice President of Products Jeremy Seow, Global Head of Design and Growth Matthew Lippl, and Project Lead and Head of Events Jared Chin.
Literally, imagine working at a company and all of the executives quit at the same time and walk out, and that is exactly the scenario that has unfolded at CoinMarketCap.
The executives who did quit have not disclosed any information regarding why they suddenly quit, probably in order to avoid a lawsuit. That being said, it is likely that this CoinMarketCap exodus has something to do with Binance acquiring CoinMarketCap four months ago.
Essentially, Binance, which is one of the biggest crypto exchanges in the world, paid $400 million to take control of CoinMarketCap, because CoinMarketCap has a tremendous amount of crypto oriented traffic.
Although it is unclear why all the original leaders of CoinMarketCap have left, the one thing that is clear is that Binance has undisputed control of CoinMarketCap at this point.
This is perhaps leading to some centralization issues, and indeed Binance is perma-listed as the #1 crypto spot exchange based on a vague ‘web traffic factor’ score, where Binance is always given a 100 out of 100. Also, the data on CoinMarketCap makes it seem like Binance has far more liquidity and trading volume than any other exchange, which is questionable.
Basically, it seems Binance has turned CoinMarketCap into a Binance advertisement, at least when it comes to exchange rankings, perhaps making CoinMarketCap not the best place for researching exchange data.
To be fair though, the possibly inflated Binance data on CoinMarketCap shouldn’t affect other popular metrics, like crypto prices and market caps.
It seems the Binance acquisition of CoinMarketCap has taken its natural course, and now the original leaders of CoinMarketCap are gone and Binance is completely in control. This calls into question the validity of some of the data on CoinMarketCap, particularly exchange ranking data, but ultimately it is likely that CoinMarketCap will continue to be one of the biggest crypto websites regardless.