Binance completes acquisition of Tokocrypto exchange, TKO token surges 10%
Leading cryptocurrency exchange Binance plans to acquire Indonesia-based Tokocrypto outright following 100% equity ownership of the exchange.
Binance invested in Tokocrypto in 2020, owning approximately 60% stake in the exchange. According to Coindesk Indonesia, Binance will gradually increase its stake to around 100%.
Binance CEO Changpeng Zhao confirmed the report, stating that Binance has injected more funds to increase its ownership of the Indonesia-based exchange.
Binance has been a majority shareholder of Toko from the beginning. We just injected more cash and increased our stock holdings a bit. pic.twitter.com/NIeYYxzPdU
— CZ🔶 Binance (@cz_binance) December 19, 2022
With this transaction, Binance will acquire the remaining 40% stake in Tokocrypto and become the sole owner of the regulated crypto exchange.
Tokocrypto co-founder Pang Kai said the acquisition will help the exchange leverage Binance’s capabilities to continue contributing to the development of Indonesia’s digital economy.
Following the acquisition, Pang Kai will step down from his role as CEO and Yudhono Rawis will serve as interim CEO.
Tokocrypto cuts labor force by 58%
Yudhono Rawis, interim CEO of Tokocrypto, said the exchange would streamline operations and focus solely on the exchange business unit.
Rawis also said the exchange will lay off about 58% of its workforce due to unfavorable market conditions.
“It is unfortunate that we had to downsize our company in order to remain prepared to deal with the uncertain macroeconomic conditions, and we sincerely apologize to our employees who were affected,” Loewis added. .
According to Rawis, the exchange will help support affected employees and recommend them for jobs at other Web3 companies, including Binance.
Following the news of Tokocrypto’s acquisition, the exchange’s TKO token surged more than 10% over the past 24 hours, trading at $0.32. crypto slate data.
