Binance: The Story of Success

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Binance: The Story of Success

One of the most popular cryptocurrency exchanges, which, by the way, is the 376th most visited website in the world, has reached all this success in just six months.

Binance was launched through an ICO in July 2017, which reportedly raised about $15 million and the vast majority of its early users were from China. That's why China's ban of cryptocurrency exchanges, which happened in September, heavily influenced the exchange forcing it to lose many users. 

Despite this setback and a fierce competition with other crypto exchanges that had been operating for a longer time Binance has managed to become the world's largest crypto exchange. At the moment of publishing this article, Binance trading volume is $4.4 billion. Binance CEO Zhao Changpeng recently said that the exchange registered "a couple million" new users a week.

On January 10, Binance briefly reopened user registrations after a short-term disabling of this feature due to the surge of popularity and for the purpose of upgrading its infrastructure. As a result, more than 240 thousand of new users registered at the exchange in 1 hour.

How did Binance manage to achieve all this?

  • Binance has an aggressive referral program, which pays a 20 percent commission. One user managed to get more than 76 BTC using this program. 
  • The exchange has its own cryptocurrency called Binance (BNB). Holders of these tokens receive 50% discount on transaction fees. In addition, since the price of BNB is mostly driven not by major cryptocurrencies rates, but by the popularity of the exchange itself, Binance token might be an excellent choice for a long-term investment.
  • And last but not least. Binance earns a lot of users demand because it comprehensively supports altcoins created via hardforks of Bitcoin blockchain. In fact, Binance supports 99% of Bitcoin and Ethereum forks. 

In spite of the incredible growth of the exchange, Zhao Changpeng assures that the company has no intentions to stop. Obtaining a license from Financial Services Agency of Japan and relocating to Tokyo is on the agenda of Binance.