With no office or precise location, the world’s largest crypto trading platform – Binance has become a source of concern for authorities.
With about $76 billion in average daily trading volume, Binance has stirred a lot of attractions and chaos with its unmatchable growth.
Growing from nothing to the biggest trading platform in just four years, Binance has proven to be a legend in the crypto world.
In a virtual conference meeting, Changpeng Zhao, Binance CEO said the reason they were able to grow so fast was that their users trusted them.
Whether this was really the case or not, governments of several countries have taken precautions to reduce the momentum of Binance.
In this article, I will share with you:
- How Binance became the largest trading platform
- How their growth alarmed everyone and the reactions it stirred.
- Finally some FAQS about them.
How Binance became the largest trading platform
It’s no news again that Binance Is the leading and biggest crypto trading platform in the world, having outranked its competitors by far, it has grown to a terrifying extent.
Statistics showed that Binance leads Coinbase, the second-largest crypto trading platform by more than a hundred currencies on their platform.
CZ, CEO of Binance said he and the Binance team plans to allow their competitors to grow a little bit more to spread the traffic buzzing around them.
Having 4000+ workers in more than 50 countries, Binance has shown everyone their might. But how did Binance get to be what it is today?
Did they just soar overnight?
Let’s find out.
Changpeng Zhao first heard about Bitcoin at a poker game in Shanghai in 2013, he stated.
Along with a group of other programmers, Zhao launched Binance in 2017.
He further stated that when Binance started operating, it didn’t need any bank account or headquarters.
Founded in 2017 which is approximately 5 years ago, Binance began in China.
But after the Chinese government banned the use of crypto due to fear of illegal printing of money out of the country, they moved out of China.
Changpeng moved with his 30 co-team members fully to Japan. Soon they were also dismissed from Japan due to not having a license to operate in the country.
After Changpeng faced repeated obstacles by the governments of different countries, he decided to dismiss the idea of operating from a location.
Therefore after this, he and his team members scattered and worked from home without a precise location or license.
Originally before the establishment of Binance, CZ has worked in different financial companies as a software developer where he built softwares for trading stocks and financial instruments.
He had even joined Blockchain.info as the third member of the cryptocurrency wallet’s team.
Putting in mind also that he worked at OKCoin, a platform for spot trading as CTO for less than a year, we know he’s got some experience.
Binance had its first major growth after six months of its establishment where itt raised $15 million in a July 2017 initial offering of its digital coin, BNB.
When users burst forth from several countries comprising nations with less-developed financial systems such as India, Russia and South Africa, Binance started gaining popularity.
In January 2018, Binance became the largest cryptocurrency exchange with a market capitalization of $1.3 billion.
This was the beginning of success for Binance, this title was enormous yet they were able to hold it successfully without losing it to any other.
Their tenaciousness in retaining this title proved to others that they were indeed worthy of it.
In March 2018, Binance announced its intentions to open an office in Malta after experiencing failure with Japan and China.
In April 2018, Binance signed a Memorandum of Understanding with the Government of Bermuda and many more including the one signed with the Malta Stock Exchange to develop a platform for trading security tokens.
In 2019, the company announced Binance Jersey, an independent entity from its parent Binance.com exchange, with the aim to expand its European influence.
Binance in numbers 2019.
According to them, “In 2019, we…”
- Maintained our lead as the world’s foremost cryptocurrency exchange:
- US$2,852,591,354 average daily trading volume
- 15,000,000+ Binance users worldwide
- 180+ countries and regions where Binance are based
- 40+ countries where the Binance team is operating
- 184 tokens listed on Binance (up from 151 to start the year)
- 591 trading pairs on Binance (up from 396 to start the year)
- 16 total languages supported on the Binance.com
- 8,875,322 USDT worth of more than 200 types of tokens retrieved by Binance Support Team for thousands of users.
- Increased the utility of BNB, one use case at a time:
- 5,321,482 BNB (US$207,338,000) burned (up from $120,000,000 worth of BNB at the end of 2018)
- 1,000,000+ users holding BNB
- 40% increase in the average number of daily BNB-holding users for 2019 compared that of 2018
- 180+ known use cases of BNB, up from 42 last year
- Introduced new financial instruments and brought more value to users:
- 2,710,000,000 USDT record-high 24-hour trading volume on Binance Futures
- 99,090,000,000 USDT total trading volume on Binance Futures
- 29 cryptocurrencies available for Margin Trading on Binance
- 56 total Margin Trading pairs
- 65 lending products offered on Binance Lending
- 16 cryptocurrencies featured on Binance Lending
- 15 total tokens supported on Binance Staking (13 ongoing, 2 recently concluded).
And many more!!
Binance in numbers 2020
- $15 billion in 24-hour all-time-high spot trading (up by 5 billion compared to 2019)
- $3.88 billion average daily trading volume (up by 36%)
- 184 tokens listed on Binance (up from 151)
- 591 trading pairs on Binance (up from 396)
- 7,000,000 USDT in recovered funds by Binance Customer Service for 3,109 users this year. (Total funds recovered since 2017 is 15,000,000 USDT)
- 26 languages featured on the Binance website (up from 16)
- 11 languages supported by Binance Customer Service
Binance Futures, Options, and Margin
- 37 billion USDT in 24-hour all-time-high futures trading (up by 34 billion compared to 2019)
- 2.6 billion USDT in all-time-high open interest (up by 18-fold since the start of the year)
- 1.7 trillion USDT in total trading volume year-to-date (up by 28-fold compared to 2019)
- 400+ trading pairs available for Margin Trading (up from 56)
- 149 derivative contracts listed on Binance Futures (including 78 USDT-margined contracts, 33 Coin-margined contracts, 32 leveraged tokens and 6 options contracts).
Binance Fiat (local currencies)
- $31.9+ billion in total order volumes this year
- $100,000,000+ all-time-high daily trading volume
- 7,970,000+ orders processed this year
- 700% increase in active users from 2019.
- $6 billion in total order volumes this year
- $54 million all-time-high daily trading volume
- 3,000,000 orders were processed this year
- 1,454 P2P merchants worldwide
- 760% increase in active users from 2019
- 150 payment options accepted worldwide
- 51 fiat currencies supported.
- $2,900,000,000 worth of crypto assets currently on Binance Earn
- $70,850,000 worth of total rewards distributed on Binance Earn
- 210,000+ daily active users of Binance Earn
- 3rd: current ranking of Binance Pool in global mining, just nine months after launch.
- 2.5% and 0.5% mining fees for BTC and ETH respectively on Binance Pool, the lowest in the crypto mining industry.
- $700,000,000 in volume generated via the Binance OTC Portal
- 46% growth in institutional client base this year.
Binance Smart Chain
- 60 projects using Binance Smart Chain.
- 600,000 unique Binance Smart Chain addresses.
- 3,000,000 BNB staked by Binance Smart Chain validators.
- 40 wallets are offered on Binance Chain & Binance Smart Chain (up from 30).
- 810,000 Binance Chain addresses (up from 332,444 in 2019).
- 154 tokens listed on Binance DEX (up from 111)
- $344,000 in recovered funds for Binance Smart Chain users following the WineSwap exit scam
And many more!!
Not everything was perfect for Binance as you may think.
Apart from their failure in establishing a branch in Japan and China, they also faced another problem that affected them.
It was reported that on the 7th of May, 2019, Binance became a victim of a “large scale security breach” in which hackers had stolen about 7,000 Bitcoin worth around U.S.$40 million at the time.
Changpeng Zhao stated that the hackers used a variety of techniques, including phishing, viruses, and other attacks.
He claimed that the hackers structured their transactions in a way that passed their existing security checks.
After experiencing such loss, Binance halted further withdrawals and deposits but allowed trading to continue.
The site opened again for withdrawals on the 9th of May.
They promised to reimburse customers through its Secure Asset Fund for Users (SAFU)
Intense reactions to Binance growth
The growth rate of Binance brings a whoa! and remains a record that will last the test of time.
This same growth rate not only brought them joy but also attracted some trouble.
The crypto exchange is facing legal troubles across the globe in countries such as Italy, the USA, Japan, the UK, Cayman Islands, Thailand, Malaysia, South Africa, Singapore e.t.c
Their trouble does not only stem from governments & financial regulators; some investors are also likely to partake in proceedings against Binance, claiming damages for the money they lost during a major hack.
After Binance hit daily processing of $76 billion, which is reported to be more than the London, New York, and Hong Kong stock exchanges combined, financial authorities in different countries have begun taking action.
Jon Cunliffe, an official in the Bank of England, in his October speech, raised the 2008 subprime-mortgage-fueled crisis and talked about crypto.
He said, “When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice.”
Consequently, some authorities in certain countries have issued warnings about its operations.
The US is looking into whether Binance assisted money laundering and has cited concerns that the control of Binance US’ data is with programmers in China.
Changpeng said Binance was working to comply with regulations, acquire proper licenses, and set up local offices and a headquarters, without revealing where according to Business Insider
In 2021, Binance was put under investigation by both the United States Department of Justice and the Internal Revenue Service on allegations of money laundering and tax offenses.
The UK’s Financial Conduct Authority ordered Binance to stop all regulated activity in the United Kingdom in June 2021.
Binance has also been banned in a lot of countries like the U.S, Serbia, Bosnia, Iran, and Myanmar while officials in Hong Kong and Japan have warned investors about the exchange.
Only Binance US, which has lesser coins and features is allowed in some states in the US,
How can I make money when there is a decline in the price of crypto?
Generally, crypto is a volatile asset, it can bring you great fortune and can also make you impoverished.
When there’s a decline in the price of crypto, you can still earn by applying the idea of Shorting.
This means if you suspect that the price of crypto is going to crash, you withdraw your money and wait for it to crash, then buy later at a lower price and vice versa.
Your profit lies in the difference between “the price you sold your assets” and the price at which you “rebought them.”
You can check out our detailed guide on how to Short on Binance.
How do I recover a lost Binance account?
Did you lose your login details? Or was your account hacked?
You might have to answer those questions before proceeding.
If your account was hacked, then you will have to contact Binance support for help. But if you only forgot your Gmail, then you can do that yourself.
Remember, whenever you sign up on a website you always get mail so if you used a Gmail, go and check your mailbox to know the right one.
And if you forgot your password, then just open the Binance app/website and click on forgot password, follow the steps as required and create a new password.
Make it strong and unique!
If you don’t mind, we have a full article on how to recover a Binance account.
Disclaimer: None of the comments or views in this article is ours, all of them are just the views of the individuals involved and the result of our research.
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