The $200m Binance-Forbes deal backfires over ‘conflict of interest’ concerns
The relationship between the media and cryptocurrencies is fast evolving. Especially since it is one of the main channels through which much of the adoption has been facilitated. In fact, analysts in the past have even noted price hikes to sustained media hype, especially with meme cryptocurrencies like Dogecoin and Shiba Inu, prompting many countries in the past to issue warnings to crypto advertisers.
However, the same has been brought into question once again. Cryptocurrency exchange Binance bought a large chunk of leading financial news outlet Forbes, reportedly in a bid to accelerate blockchain awareness. The $200 million buy-out has irked many, as they questioned the conflict of interest that can arise out of this situation.
<p lang=«en» dir=«ltr» xml:lang=«en»>Binance buying part of Forbes is like McDonald’s buying part of Yelp or Marriott buying part of Trip Advisor.Even if no conflict of interest, there may be the appearance of conflict.
— Henri Arslanian (@HenriArslanian) February 10, 2022
This conflict becomes more prominent when a past lawsuit between both parties is considered. In 2020, Binance had sued Forbes for defamation after the century-old business publication had leaked documents that highlighted how the global crypto exchange had previously evaded regulatory oversight. The lawsuit was later dropped in 2021.
Fast forward to today, Binance’s CEO has issued a statement to clear the air about the intentions behind this acquisition. He took to Twitter to claim that ‘Forbes editorial independence is and will always be sacrosanct’ and both the entities will strive to maintain the same. He added that this buyout was aimed instead at helping the publication build its own blockchain infrastructure.
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