As Binance and CoinMarketCap make significant moves aimed at growth, industry experts to see more power held among fewer players in the crypto world over the next five years.
Binance, the largest crypto exchange by volume in the world, is already three times larger than its nearest competitor, BitMex. It boasts nearly 22 percent of traffic share and the company’s CEO, CZ Zhao, is using an acquisitive strategy to grow further: The company boasted nine full acquisitions in 2019 alone, including WazirX and CoinMarketCap with its eyebrow-raising online traffic.
Essentially, Binance “needs more eyeballs on its products.” To that end, it is willing to acquire companies as its own organic growth begins to slow. And it has the treasure chest to do so.
Of course, there are other players in the crypto industry focused on consolidation, notably Tron, which recently acquired the world’s largest decentralized P2P data distributor, BitTorrent, among other big deals. Experts expect this trend to continue as fewer companies acquire more and more market share and power.
The risks of this include lack of regulation as well as investor protections common in other markets, not to mention the frustrating lack of transparency in the crypto world.
However, just as with blockchain, I anticipate even more multinational giants – fewer players with more power. Read more.