Binance’s success story: from McDonald’s to…
The full story of Binance’s emergence and development. Learn in detail what the secret of Binance’s success is. Interesting facts, achievements and secrets.
Binance: history of creation and success
When we say crypto exchange, we mean Binance, when we say Binance, we mean crypto exchange… No wonder, Binance is the largest (by daily turnover) cryptocurrency exchange on the planet! Only here can they offer such a wealth of tools for trading cryptocurrencies and other digital assets. “Binance” supports more than 600 cryptocurrencies – several times more than the nearest competitor, Coinbase. How the project of the former McDonald’s employee managed to achieve such heights, the team https://lindeal.com found out.
Binance is a… Quick Synopsis of a Crypto-Exchange
Quick Facts About Binance Crypto Exchange
Binance is a leading global exchange for trading cryptocurrency and other digital assets, a blockchain ecosystem and infrastructure provider for the cryptocurrency industry. The platform is valued for providing a unique set of crypto products and features:
- trading and finance;
- research and data analytics;
- investment and incubation;
- infrastructure solutions;
Binance opens four types of trading to its users:
- Spot: trading with “immediate delivery”, making transactions “on the spot”. Exchange of digital assets for fiat money.
- Futures: the ability to trade futures contracts relative to six major digital currencies – Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, EOS.
- P2P: sale and purchase of crypto using 150 payment options, including bank transfers, e-wallets, PayPal, M-Pesa.
- Marginal: it is assumed that “the trader will necessarily “close the deal”: perform a paired counter-transaction to the “opening” deal – if the first one was buying bitcoins for dollars, then after some time it will necessarily be selling these bitcoins for dollars, not paying for some goods with purchased bitcoins” (“Wikipedia”).
At Binance it is not necessary to be verified if the user does not work with fiat (traditional) money and withdraws no more than 0.06 BTC per day. If, however, pass the verification, then the withdrawal limit per day will be 100 bitcoins.
History of Binance
“Binance emerged in 2017 – it took only six months to become a world-class blockchain platform capable of offering a full range of services for traders and digital investors. The company’s founder is Changpeng Zhao, known in the cryptocurrency community as CZ (Changpeng Zhao). He has come a long way from a burger vendor at McDonald’s to a developer of futures trading software on Wall Street.
In 2005 the specialist decided to leave his position as the head of Bloomberg Tradebook Futures research and development team, moved to Shanghai, tried himself both as an independent business and as the Director of Technology at Blockchain.info where he first became acquainted with VTS. The logical continuation of CZ’s journey was the launch of his own crypto exchange:
- 2017: the ICO raised $15 million and 20,000 people registered on the platform.
- 2018: The company briefly suspended operations to update the architecture of its virtual platform. Once Binance was up and running again, 240,000 new users registered on the exchange in the first hour!
- 2018: in January, Binance was recognized as the largest cryptocurrency exchange on the planet – the image of CHAO adorned the main cover of Forbes.
- 2020: the average daily turnover of the site was $3.88 billion.
In April 2022 it became known that Russian users with a deposit of more than 10,000 euros can no longer take part in trading on Binance.
“It all started at McDonald’s”: the journey of founder Changpeng Zhao
Binance founder’s life journey
Changpeng Zhao was born in Jiangsu Province, China, in 1977. Since Changpeng Zhao’s childhood, he had to constantly adapt to new conditions: the future billionaire’s father was a university philosophy teacher, and he often changed jobs. Dad was one of the victims of the persecutions of the “cultural revolution” unleashed by Mao Zedong. The head of state’s desire to “establish communism and defeat Marxist revisionism” resulted in intellectuals being branded as “pro-bourgeois intellectuals. No wonder Zhao’s family moved to liberal Vancouver at the first opportunity.
The Chinese immigrants lived more than modestly in their new place: young Changpeng had to cook burgers at McDonald’s by day and work part-time at a gas station at night. Despite the poor life, his father Zhao was able to give his 12-year-old son a real luxury – a computer IBM PC XT 286, costing then 5600 dollars! As Zhao Senior admitted, it was the most expensive thing he had ever bought. The fact was that the teacher himself was strong in computer science, knew several programming languages – and was convinced that it was computer code that would give his heir a better life.
Changpeng was fascinated by computers: he interned with a software developer and then took a job at a Japanese trading company that outsourced to the Tokyo Stock Exchange. Zhao’s responsibility was to develop systems for high-frequency trading, which allowed trades to be made in some fractions of a second. “I was attracted to the fact that the job was in Tokyo, but then I realized that, gosh, there’s a lot of money flowing through these systems, just a huge amount. And I stayed in that industry forever.”
“I was fascinated by cryptocurrency”: Zhao creates Binance
Zhao is fascinated by cryptocurrency
CZ was introduced to the world of cryptocurrency in 2013: he was told about bitcoins during a poker game by his friends Bobby Li, CEO of cryptocurrency exchange BTC China, and crypto investor Ron Cao. Programmer Zhao easily understood the essence of cryptocurrency, encryption technology, blockchain and… once and for all fell in love with bitcoins! Digital money gave him the desired freedom and independence, limitless possibilities – cryptocurrencies can be transferred to anyone and anywhere.
It got to the point where Changpeng converted all his savings into bitcoins, quit his job and got the first job at blockchain.info, a digital wallet service. Then there was a position of technical director at OKCoin cryptocurrency exchange, which exposed to Zhao all imperfections of such platforms: artificial overstatement of trading volumes, manipulation of audit reports, attraction of bots… Disappointed, he left OKCoin. Is there any other way to find the perfect cryptocurrency exchange than to create one yourself?
Then, in 2017, Changpen succeeded in attracting investors: by selling Binance Coin tokens, he raised $15 million and launched the project just 11 days after the ICO. So successful that six months later Deutsche Bank noted that Zhao’s brainchild became “exchange No. 1” with a profit of $200 million. In 180 days CZ not only became a leader in the crypto market, but also took its overwhelming share.
“We’ll be ahead of the curve”: Zhao’s top steps to make Binance the best
The main steps to Binance’s success
Zhao was obsessed with the idea of “the most perfect crypto-platform,” which is why he strove to make everything perfect from the early days:
- Combined the advantages of a decentralized blockchain network with the virtues of the high-frequency trading systems he knew well.
- Accelerated the processes of information exchange: the site could process more than 1 million transactions per second – this allowed to reduce the commission rate.
- Payed great attention to customer service and user interface, which made the platform understandable and accessible.
- Introduced crypto-to-crypto – the ability to convert one crypto-coin to another.
- Achieved maximum freedom from state financial systems by prohibiting transactions with fiat currencies on the platform.
- It registered the company in the Cayman Islands, refused the headquarters, restricted the offices and services locations, making the project impervious to the states’ normative claims.
- Offered users special loyalty programs.
Zhao introduced significant copyright improvements when hundreds of his competitors were simply copying each other.
Binance in 2022: How the company is evolving today
“Binance is showing steady growth against all odds:
- 2021 brought 7 million new users (the clientele increased by 33%).
- The annual trading volume increased sixfold – up to $7.7 trillion!
- The status of the largest crypto exchange, a full-fledged blockchain system.
- Unique tools and opportunities.
They see the reason for success here in the fact that they were able to make their project invulnerable to influence from the outside. Zhao says his and Binance’s main goal is to exceed the expectations of the crypto exchange’s 90 million users: “We are creating a trading platform of a level never seen before.”
“No house and no car”: Binance founder’s fortune reached $96 billion
The fortune of the founder of Binance
Asia’s richest man, whose personal fortune will soon exceed $100 billion, does not fit the image of a typical billionaire. Zhao has neither a house of his own, nor a luxury car, nor a luxury Rolex. He prefers his favorite black hooded sweatshirt. CZ most of all does not like publicity – he prefers confidentiality, both in business and in his private life. Journalists have to admit that they know practically nothing about the man who is number 11 among the richest people in the world!
It is known that his favorite things are T-shirts and sweatshirts with the logo of the beloved Binance. CZ also has no interests or hobbies: “Almost all my free time I think about Binance”. The billionaire has only two weaknesses – smartphones and laptops: he owns several gadgets at once, which is very helpful in his work. The humble businessman says he doesn’t see the perks of his enormous fortune, other than how he can “stay in a nice hotel room or fly business class.”
“I don’t have a car. I don’t have a house. The problem with cars and houses is that I just don’t think they’re liquid. Once you buy them, you can’t get rid of them easily. I prefer not to own anything” (from an interview with Changpeng Zhao).
Binance now: figures, facts, achievements
What is Binance today? The answer is more convincing in the language of arithmetic:
- 600+ cryptocurrencies available;
- 24-hour trading volume of $76 billion;
- 1.4+ million transactions per second;
- 90 million registered users;
- average daily volume of 2.0 bn;
- lowest transaction fees – less than 0.10%;
- 24/7 technical support.
Besides operations with cryptocurrencies, users have “endless possibilities”: fan-tokens, mystery boxes, game tokens on Binance NFT, earnings on cryptocurrency storage in Binance Earn, improved data encryption, safe assets fund for customers, user access control, etc.
“Binance is a complete and extensive ecosystem:
- Binance Academy – a training center open to everyone, where you can learn everything important about blockchain and cryptocurrencies.
- Binance Cloud – turnkey solution for those who want to launch their own CFA exchange platform.
- Binance Chain is a public and secure blockchain system offering instant transactions.
- Binance Charity Foundation – a non-profit association that aims to achieve sustainable development across the planet by taking advantage of blockchain opportunities.
- Binance DEX is a decentralized crypto-exchange with a distributed node network. Here users can both securely store their own private codes and manage their digital wallets.
- Binance Info – information platform where the most objective data, news, ratings, reports and official documentation on digital assets are collected.
- Binance Labs – investment fund, the purpose of which is to develop the infrastructure of Binance.
- Binance Research – professional analytics for crypto-investors.
- Binance Smart Chain – a blockchain system running in parallel with Binance Chain. It is distinguished by better functionality of smart contacts, as well as compatibility with the virtual machine “Etherium”.
Binance X is a proactive project that promotes innovation that contributes to the development of both Binance and the global cryptosystem.
Since June 2021, Binance NFT-marketplace is also operating, a platform where all kinds of virtual works of art and digital items for collection are traded.
15 Secrets of Binance’s Success: How to Become the Best Cryptocurrency Exchange?