Blockchain

From investment to acquisition real quick: Binance acquires Indonesia's Tokocrypto

December 20, 2022
Tokocrypto

Binance has gotten themselves a holiday present: a new acquisition! Yup, Binance just acquired the Indonesian crypto exchange Tokocrypto!

  • Up up. Tokocrypto's token, TKO is up 40% on the day and is up almost 66% on the month (since rumors started flying about an acquisition).

Not a new face! Binance has always been a majority shareholder of Tokocrypto. While the amount is hush-hush, they injected more cash into the firm and increased their ownership. NBD.

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🔙 Rewind

Who's Tokocrypto, anyway? Founded in 2018, they were the first crypto exchange in Indonesia to get the approval of Indonesia's Commodity Futures Trading Regulatory Agency (BAPPEBTI).

  • Now, 17 companies had been approved by BAPPEBTI by early this year.

Their last known round was an investment from Singapore's Signum Capital in December 2021.

  • In 2021, they were also considering an IPO sometime in the next 2–3 years (that didn't end up happening).

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🤷🏻‍♀️Who cares?

Binance does. This isn't their first acquisition of a crypto exchange. They invested in Malaysia's MX Global in March and acquired Japan's Sakura in November.

  • Thanks to acquisitions like these (basically, buying exchanges with licenses), Binance can operate in the country without getting their own license. #Hacks.

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🤔 What's gonna change?

A few things. Tokocrypto's co-founder and CEO stepping down. But he's staying on the board of commissioners!

  • Interim CEO Yudhono Rawis is taking his spot.

Also, 58% of staff will be laid off. And no, it's not their first layoff. Tokocrypto laid off 45 employees in September this year.

No new names. Tokocrypto is keeping their name and branding post-acquisition and will operate as a separate entity from Binance.

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