Exchange News

Bainance plans to buy three digital currency companies each month


Changpeng Zhao, CEO of Bainance Digital Currency Exchange, has announced that the exchange intends to buy 30 digital currency companies this year; This means that Bainance adds three companies to its subsidiary each month.

to the Report In an interview with Bloomberg, Cryptonews, CEO of Bainance Exchange, said that the exchange intends to actively buy companies, especially companies that are active in new areas. He said in this regard:

My view is that we are not experts in these areas and it is better for us to find strong teams that have done this type of activity well before.

Zhao also said that a number of these transactions will be made in the future and stated:

We plan to acquire and purchase between 20 and 30 companies in one year. Most of these purchases will be small, which we do not intend to announce. Some of these purchases are larger, such as the CoinMarketCap website; But in any case, our plan is to buy about 30 companies operating in the field of digital currencies every year, which probably means three deals per month.

Zhao did not elaborate on the purpose of these potential acquisitions.

Earlier, in response to speculation in the South Korean media that the exchange was also a potential buyer of the Bithumb exchange, Bainance said that they always have a playful approach to investing and strategic partnerships at all times.

Meanwhile, PwC, a major consulting firm, said in a recent report on mergers in the digital currency industry that we expect to see more mergers as some larger, more capital-intensive and more profitable companies continue to buy. Be in the industry.

The company report also states:

We expect the focus to be not on buying smaller competitors, but on mergers and acquisitions on companies that have added ancillary services to their current offerings. Media in the field of digital currency, data, legal compliance and research are such companies.

Bainance has repeatedly emphasized that they are building the infrastructure for China’s blockchain ecosystem. Bainance now controls both a trust exchange and a non-trust exchange, the company has developed Binance Smart Chain and has its own token launch platform and investment arm. The exchange has also established a growth hub for Blockchain projects, provides digital asset research services, expanded its digital currency wallet, run a charity, and recently introduced a digital currency-based payment service.

In the interview, Changpeng Zhao also talked about other potential projects of the exchange. Unlike its rival, Baines, which has applied for a public offering in the United States, Bainance is currently reluctant. The company has enough cash to continue to grow, said Bainance CEO. He added:

We do not need a lot of money, we are profitable and growing.

On the other hand, Zhao has said that the realm of non-parasitic tokens (NFTs) is currently very turbulent. However, he did not rule out the possibility that the company under his management may operate in this area.

In addition, Bainance Exchange plans to add more Fiat currency channels to its platform. The exchange announced last year that it had added about 50 different channels around the world; And they are likely to add another 30 to 50 channels this year.

Zhao also claims that he does not have specific figures regarding the financial indicators related to the company’s growth. He said the numbers are changing rapidly due to bitcoin price fluctuations, and as the company is cutting commissions in various sectors, it is too early to estimate this year’s revenue. However, he acknowledged that trading volume had increased significantly in the first two months of the year.

The CEO of Bainance had said in December 2020 that the company expects to make between $ 800 and $ 1 billion in profits by 2020. It is worth mentioning that in 2019, the profit of this exchange was 570 million dollars.

Bainance is also carrying out relatively large development activities in various fields. Binance Card is one of these projects, which Zhao said was unprofitable. However, Zhao has backed the project, saying the company will offer the product.

The CEO of Bainance also said in response to the question whether the company will eventually become a DAO or decentralized organization:

It is possible, but it will take several years.

Meanwhile, as previously reported in the media, Bainance has been prosecuted by the US Commodity Futures Trading Commission (SAES). The commission said Bainance had allowed Americans to violate some US law by trading on the platform.

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