According to a Techinasia source, the world’s largest cryptocurrency exchange Binance is exploring the acquisition of Indonesian crypto trading platform Tokocrypto.
According to the source, Tokocrypto CEO Pang Xue Kai would step down once the deal is finalized. Tokocrypto is also expected to lay off a substantial number of staff once it becomes a subsidiary of this exchange. Tokocrypto lay off 45 people, or 20% of its workforce, in September 2022, citing problems caused by the 2022 cryptocurrency market crash.
Tokocrypto and Binance have both declined to comment on the report.
Tokocrypto’s problem may be seen in the fact that CoinGecko reported that the exchange had just roughly 9 million USD in trade volume in the previous 24 hours, a pitiful figure.
According to Indonesian Ministry of Trade figures, the value of crypto transactions in the first nine months of 2022 in this Southeast Asian country totaled 17 billion USD, a 57.8% decrease from the same period last year.
The platform most likely decided to acquire Tokocrypto because the platform is licensed to operate in Indonesia. This is also why Binance chose to invest in this platform in 2020, promoting its TKO token on Binance Launchpad.
Binance has also used this method in the past to bypass regulatory restrictions. The platform has announced the acquisition of the Japanese exchange Sakura Exchange BitCoin for a license to operate.
Notably, the value of Tokocrypto’s TKO coin more than doubled following news of the exchange’s acquisition by Binance, before correcting at the time of the update.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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