Binance has become the leading cryptocurrency exchange in the world, and it is only a few years old. The company was founded by Changpeng Zhao, who also created the first version of what is now known as Bancor.
The what is binance coin is a cryptocurrency that was created by Zhao Changpeng and was released on July 2017. It has been growing in popularity ever since its release, with many people comparing it to the likes of Bitcoin.
The Binance exchange is powered by Binance Coin (BNB), a cryptocurrency. The BNB market value has grown to over $4.5 billion since its initial coin offering (ICO) in July 2017.
A single BNB coin was initially worth 10 cents, but now it is worth $39.57 after almost two years.
Interested in learning how Binance grew from a small Chinese crypto exchange to the world’s most popular platform? Continue reading to learn more about Binance’s background and how they become the cryptocurrency powerhouse they are today.
The History of Binance and Its humble Beginnings
Let’s learn more about Binance’s founder before diving into its history. Changpeng Zhao, often known as CZ, is the creator of Binance. He was born in Jiangsu, China. When CZ was a teenager, the Zhaos relocated to Vancouver, Canada, when the government deported his family for belonging to the intellectual elite.
CZ worked at McDonald’s and other odd jobs throughout his high school years to help support his family financially. He earned a computer science degree from Montreal’s renowned McGill University a few years later.
CZ worked on the development of a system to match trading orders on the Tokyo Stock Exchange after graduation. He then went on to create futures trading software at Bloomberg’s Tradebook.
CZ quit the stock market and hopped around different crypto ventures after finding the job unsatisfying. He even spent eight months as the chief of development at Blockchain.info.
Binance Coin’s History
CZ observed the significant increase in currency offers in 2017 and decided to create his own coin. CZ’s Binance Coin launched its initial coin offering with 200 million tokens on June 24, 2017, after raising $15 million. The Binance exchange launched 11 days later.
The only cryptocurrencies accessible on Binance at the time of its launch were BNB, BTC, NEO, LTC, and ETH. Over 120 different currencies are now supported by the exchange.
Binance.com has collected over 120,000 users 45 days after its launch, with an average daily growth rate of 5,000 new registered users.
Despite the fact that the business was founded in China, it was forced to move to Japan due to China’s prohibition on cryptocurrency trading. Binance has become the world’s biggest cryptocurrency exchange in terms of traded value after just 165 days of existence.
Post-China
Binance had a distinct edge since many exchanges were based in China at the time of the ban. Binance was able to rapidly deploy out of China and continue to grow its company as a new platform in the crypto sector, while other businesses were still working out how to move.
Binance has made a profit of $350 million in its first six months of operation, mostly from transaction fees. It also had a global user base of ten million people.
Binance began a period of aggressive growth as it continued to develop. They intended to establish connections with tiny island countries in order to open offices and form partnerships.
Binance stated in mid-2017 that they will be establishing a global compliance center in Bermuda. They also announced that their Binance Charity Foundation will contribute $10 million to tech-related educational initiatives. After that, they’d put another $5 million into blockchain companies.
Binance also stated that they will assist Bermuda’s government in developing a blockchain and cryptocurrency regulatory framework.
Binance partnered with the Malta Stock Exchange in September 2018 to allow security token trading. Binance also bought a large chunk of Founders Bank, a Maltese financial firm. Founders Bank aims to obtain financial services from conventional banks for crypto and blockchain-related businesses.
2019
Binance Jersey is the latest addition to Binance’s island development. On the British island of Jersey, this would function as a fiat-crypto exchange. Binance Jersey is a separate business from its parent firm, Binance.com. Binance Uganda was soon established, with similar objectives for the African continent.
Simplex Collaboration
Binance collaborated with Simplex at the start of the year in order to enter the credit card market. Simplex is a FinTech firm that specializes in ensuring fraud-free payment processing. The business is based in Israel.
Users may now use their credit cards to purchase cryptocurrency on Binance’s website thanks to a collaboration between Binance and Simplex. Users may now purchase cryptos including Bitcoin, Binance Coin, and Ethereum using a Visa or Mastercard using Simplex’s software.
Hacking Binance
Binance was hacked on a big scale in May of this year. Over $40 million was stolen by the crooks. That was worth almost 7,000 bitcoins at the time of the attack.
The hackers were able to carry out the security breach by obtaining two-factor codes, API credentials, and other information, according to Binance. The theft was traced down to a single hot wallet, according to the firm.
The hackers were able to get access to many well-funded accounts’ hot wallets and take funds all at once. A hot wallet is a digital wallet that is linked to the internet in some manner, making it simpler to access from a distance. A cold wallet is one that does not have access to the internet. Around 2% of Binance’s total bitcoin assets were stolen in this incident.
Several warnings in the Binance system went off after the hackers took their funds. Shortly after, the firm stopped all withdrawals. Deposits were also stopped.
Fortunately, Binance maintains a Secure Asset Fund for Users (SAFU) for situations like these, and the losses were covered.
Stablecoin
Binance announced the launch of its stablecoin in June of this year. Stablecoins are a kind of cryptocurrency that is intended to reduce volatility. It operates by tying it to a fiat currency, thus increasing its stability.
Binance GBP was the first Binance stablecoin (BGBP). It is completely backed by British pound reserves. This implies that 1 BGBP is worth the same as 1 GBP.
A USDC/BGBP trading pair allows users to trade BGBP. The stablecoin USDC (USD Coin) is the US version of the stablecoin. The value of 1 USDC is the same as the value of 1 US dollar.
Binance’s first stablecoin is the BGBP, which is an Ethereum token. In the future, Binance plans to launch additional stablecoins tied to other fiat currencies.
Today’s Binance
While there are a variety of methods to invest in cryptocurrency, utilizing a platform like Binance is clearly one of the most efficient. Binance has rapidly established itself as one of the world’s biggest and most powerful cryptocurrency exchanges since its inception in the summer of 2017.
On average, the marketplace handles 1.2 billion transactions each day. On the platform, about 1.4 million transactions take place every second. In comparison, Coinbase, which was founded in 2012, is far behind on these measures.
Binance currently does not have a formal headquarters. For security reasons, they try to keep the locations of many of their properties hidden. Many people think they have offices and servers in Hong Kong, Taiwan, and Korea, in addition to the places previously stated – such as Jersey, Malta, Bermuda, and Japan.
Binance has moved into other sectors of the crypto industry in addition to providing a high-quality exchange.
Binance Academy includes videos, tutorials, and quizzes on blockchain, security, and economics subjects. On their Academy website, you may access all of the materials for free. The software makes blockchain more approachable and understandable.
The Blockchain Charity Foundation (BCF) of the business has raised millions of dollars for various charities all around the globe. The group aims to address large-scale problems such as global poverty and hunger. It is the first non-profit organization to accept cryptocurrency contributions via its blockchain-enabled platform.
Binance Labs funds incubators and other initiatives that help cryptocurrency businesses and communities succeed.
Binance in the Future
Whatever perspective you choose, it is obvious that Binance has achieved more in just two years than most businesses could ever dream of. Binance’s unique success has been attributed to entering the cryptosphere at the appropriate moment, adopting an aggressive growth strategy, and using savvy business methods.
However, the firm isn’t resting on its laurels. As they continue to develop and adapt, they have a lot more in store for them. Let’s take a look at some of the things they’ll be releasing in the next year.
Trading on Margin
Binance has launched an online sign-up form for anyone interested in receiving early access to margin trading. Margin trading enables a user to enhance their purchasing power by leveraging themselves via a borrowed position.
BitMex is now the most popular exchange for margin trading. When Binance begins to provide this underused service, they will undoubtedly attract a sizable part of their client base.
Futures
Trading futures is a novel concept in the crypto realm. A trader in futures trading agrees to purchase a commodity at a certain price at a predetermined period in the future.
If a trader believes the value of BNB will rise in the future, they will be able to purchase shares on a future market for a fixed price that they believe will be lower than the real price of BNB.
Understanding Binance’s History
A look into Binance’s history, such as the one provided in the comprehensive description above, can help you get a better understanding and respect for this unique company.
Now that you’ve learnt about Binance, are you interested in learning how to invest in cryptocurrency? If that’s the case, Crypto Ryan offers lots of how-to tutorials for you!
The binance us is a cryptocurrency exchange that was founded in China. The founder of the company, Changpeng Zhao, has been quoted as saying that he wants Binance to be the Amazon and Alibaba of crypto trading.
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Frequently Asked Questions
How did Binance become so popular?
Binance is a cryptocurrency exchange that has become very popular because it allows users to trade cryptocurrencies without having to pay fees.
When was Binance started?
Binance was founded in 2017.
Why was Binance banned in the US?
Binance was not banned in the US. The U.S. Securities and Exchange Commission (SEC) issued an order that prevented trading of Binance Coin on exchanges within the United States.
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