Warning from Binance Capital CEO: Don’t Invest in CoinDesk

Binance CEO Changpeng Zhao has claimed that the company will no longer purchase CoinDesk crypto media through CoinMarketCap. He said the purchase would not go forward due to various factors, regardless of the $75 million price tag.

According to a report by Blockworks on March 13, CoinDesk is an acquisition target for Binance Capital Management (BCM). The report indicated that BCM was going to explore the option through its Delaware affiliate, using CoinMarketCap to bridge the acquisition.

John Rice, the author behind the report and a member of the Blockworks team, explained that among the sources was a close whistleblower within the Binance subsidiary.

Also, another source explained that Binance is considering going through a blind trust with CoinMarketCap.

However, contrary to claims that the purchase was pending, CZ confirmed that Binance would not proceed with it. According to one of the media tweet By CZ, CoinDesk, and Binance wouldn’t be a perfect fit. As such, they do not intend to buy the media company.

Moreover, the purchase will have little chance of completion due to three major factors: it can involve significant oversight, be costly over time, and affect revenue.

CoinDesk is still on the market

CoinDesk is among the leaders in reporting crypto news and events. CoinDesk has an estimated value of $300 million having grown exponentially since it was purchased by DCG in 2016 for $500,000.

However, CoinDesk has been on the market since January and has been in acquisition talks.

In January, Cardano founder Hoskinson explained his intention to buy CoinDesk in a YouTube video.

Binance late last year announced its plans to target a $1 billion recovery fund to buy distressed crypto assets. CoinDesk was among the intended purchases, but recent analysis has shown challenges that give a minimum likelihood of a full takeover by BCM. Binance still has plans to top the cryptocurrency market and has even ventured into cryptocurrency mining.