Friday, June 2, 2023

Binance Aims World Domination


Binance is looking to broaden its business interests by purchasing companies that aren’t in the cryptocurrency space.

The company has sought to diversify its revenue streams and encourage crypto usage in the light of rising regulatory scrutiny. They will be able to do so by acquiring traditional businesses in each sector of the economy.

The CEO Changpeng Zhao announced the move to his 5.3 million Twitter followers. He intends to find and invest in one or two targets in each economic area, with the goal of converting them to cryptocurrency.

Binance, which already holds the status of being the world’s largest crypto exchange, is attempting to attract corporations from traditional marketplaces. This is in an effort to broaden cryptocurrency usage and diversify its own business.

Zhao went on to remark in the interview that pressuring traditional enterprises to accept crypto will put pressure on the late adopters. Overall market rivalry also increased as a result of this.

Investments to Solidify Binance

The announcement comes just a few weeks after Binance announced a $200 million investment in Forbes magazine in early February. It cemented Binance’s position as one of the media company’s two top shareholders.

These developments continue to highlight the Bitcoin industry’s growing real-world power. Binance has a market capitalization of almost $300 billion. Changpeng Zhao also ranked as the world’s 11th richest man.

Previously, cryptocurrency exchangers have plastered their branding on stadiums and stolen the show at Super Bowls. Binance, on the other hand, is positioning itself as a serious contender in acquisitions and investments after purchasing such a substantial share in a legacy media organization like Forbes.

Binance has already experimented with purchasing assets and firms that are not directly related to its primary business. In April 2020, it purchased cryptocurrency data website CoinMarketCap. In late December 2021, it also bought a majority interest in the card-payment services behemoth Swipe.

Diversifying Revenue

Purchasing traditional firms outside of digital assets appears to be a sensible strategy in terms of diversifying revenue. According to CZ, 90 percent of its revenue presently derives from trading fees on its exchange.

The revelation regarding Binance’s plans beyond cryptocurrencies comes as the exchange continues to be scrutinized by regulators all around the world.

The UK Financial Conduct Authority sent a warning shot across the bows concerning a strategic relationship three days ago. This is a partnership between Bifinity, Binance’s in-house card payment service, and Eqonex, an investment firm. The companies received a $36 million convertible loan to grow their products, including the presently FCA-registered Digivault.

The FCA warned Digivault about potential regulatory issues. They stated that people and companies affiliated with the Binance Group may have become beneficial proprietors of Digivault as a result of the deal. This complies with the Anti-Money Laundering Regulations.

Binance also said to be in talks to secure a Dubai operating license. This comes as the UAE continues its efforts to establish itself as a Middle Eastern “oasis” for digital assets.

Ivan Cruz
Ivan Cruz
Ivan Cruz is a writer for Cryptoconstellation. He has his Masters in Applied Research in Economics & Business. Ivan has been trading crypto for the past 7 years himself and feels it is his duty to bring you all the latest news.

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