As early as 2020, Binance invested in Tokocrypto and owned about a 60% stake in the exchange. As per Coindesk Indonesia, Binance will gradually increase its stakes to about 100%.
Binance CEO Changpeng Zhao confirmed the report, stating that Binance has injected more funds to increase its ownership of the Indonasian-based exchange.
Binance was the majority shareholder of Toko from the beginning. Just injected more cash and increased our shareholding a bit. pic.twitter.com/NIeYYxzPdU
— CZ 🔶 Binance (@cz_binance) December 19, 2022
The deal will see Binance acquire the remaining 40% shares of Tokocrypto, to become the sole owner of the regulated crypto exchange.
Tokocrypto co-founder Pang Kai said the acquisition would help the exchange leverage Binance’s capabilities to continue contributing to advance Indonesia’s digital economy.
Following the acquisition, Pang Kai will step down from his role as CEO, while Yudhono Rawis will serve as the interim CEO.
Tokocrypto slashes workforce slashed by 58%
Tokocrypto interim CEO Yudhono Rawis said the exchange will streamline its operations and focus only on the exchange business unit.
In addition, Rawis said that due to unfavorable market conditions, the exchange will lay off about 58% of its employees.
“It is regrettable that we had to downsize the company to ensure that we remain in a good position to deal with uncertain macroeconomic conditions and we express our sincere apologies to the affected employees,” Rawis added.
According to Rawis, the exchange will support the affected employees and help recommend them for jobs in other Web3 companies, including Binance.
Following the news of Tokocrypto’s acquisition, the exchange’s TKO token has surged by over 10% to trade at $0.32 in the last 24 hours, according to CryptoSlate data.