The popular cryptocurrency exchange, Binance is making a $200 million investment in Forbes just two years after it sued the 105-year-old media brand for defamation. A Binance spokesperson stated that Forbes’s editorial independence would remain “sacrosanct” after the deal. Binance sued Forbes and two of its writers in November 2020 after the publication of a story that proclaimed Binance “conceived of an elaborate corporate structure designed to intentionally deceive regulators”.
Forbes is Stepping into Financial Mainstream for Cryptocurrency
The cryptocurrency exchange, Binance called the story “false, misleading and highly defamatory” and declared it had cost the company millions of dollars. The lawsuit was dropped by Binance in February last year. The said investment in Forbes is another step into the financial mainstream for cryptocurrency, which has shifted from the perimeters of finance to a $2 trillion global market at the forefront of Web3, the catch-all term for the latest iteration of the internet.
However, growth in the cryptocurrency market has been shaky, highlighted by the arrest on Tuesday of a one-time Forbes contributor, Heather Morgan, and her husband for allegedly conniving to launder $4.5 billion in bitcoin. Forbes stated on Thursday that Binance’s investment in Forbes will be conducted through a publicly exchanged special purpose acquisition company, an investment vehicle that helps firms acquire quick access to a stock market listing.
The Investment in Forbes Will be Utilized to Build Consumer Understanding
Furthermore, Forbes, which published its first issue in 1917, is famous for its billionaires’ list, whose constituents include the Binance chief executive and founder, Changpeng Zhao, whose wealth is estimated at $1.9 billion by the magazine. Zhao commented about the investment in Forbes, stating, “As Web3 and blockchain technologies move forward and the crypto market comes of age we know that media is an essential element to build widespread consumer understanding and education. We look forward to bolstering Forbes’s digital initiatives as they evolve into a next-level investment insights platform.”
In addition to this, Mike Federle, the chief executive of Forbes, said the publisher could become a “true leader” in information on digital assets with the latest investment in Forbes. “Forbes is committed to demystifying the complexities and providing helpful information about blockchain technologies and all emerging digital assets,” he said.
Source: The Verge