When you discover the largest cryptocurrency exchange by volume, Binance, just turns three in an 11 year old market, then you will wonder at how Changpeng Zhao (CZ) and his vibrant team have been able to achieve such a massive growth in the span of just three years.
Since Bitcoin spun into the limelight, there has been the emergence of new cryptocurrency exchanges across the world. However, amongst the many of these exchanges that have shown up in the last decade, neither of them seem to have achieved the amount of growth that Binance has acquired over the years.
Binance rose to become the largest crypto currency exchange in 2018 and since then, it has shown no sign of stopping. At some point , the exchange was receiving an influx of registered users everyday and had to limit account opening on its platform.
While some people in the crypto world, view the leading crypto currency exchange dominance as monopolising the market, especially after its acquisition of some crypto platforms; however, the inevitable truth is that Binance is years ahead of its competitors. A lot of the top crypto platforms in the crypto world are playing catch up with Binance.
Binance was founded in 2017 by Changpeng Zhao, alongside Yi He. The company started out in China and later moved to Japan, but due to strict regulations of bitcoin and cryptocurrencies, the company later headquartered in Malta.
One important indicator to this are the daily rankings of top crypto exchanges. A close look at the volumes, liquidity etc, of these exchanges, shows some significant proof print which Binance has over others.
Binance has risen beyond just an exchange to a big ecosystem. Apart from its trading exchange platform, the crypto company has spread its tentacles to some other areas as well. Let’s take a brief look at some of them.
In 2018, Binance announced a $1 billion dollars investment fund for its incubation program, through the venture arm of the company – Binance Labs – to support and develop projects in the blockchain ecosystem, starting out with Asia and Africa.
In the case of the African continent, Binance published a ten-point thesis, highlighting why it’s bullish on the African market. The global cryptocurrency exchange has since then, incubated and funded numerous crypto and blockchain startups such as BitSika, YellowCard.io and Bundle Africa, amongst others.
The Binance launchpad is the initial exchange offering (IEO) platform of the cryptocurrency exchange.
After the massive failure of crypto projects from the 2017 ICO boom, token sale in the crypto market took a new turn.
Cryptocurrency exchanges came out with a new way of vetting and listing crypto startups tokens, a move that seems to have become the ‘new normal’ for new crypto projects in the market.
The concept of launchpad, according to the exchange, makes it easier for new startups to raise funds and focus on driving the project vision. The cryptocurrency exchange, through her token launch platform, has listed over 10 crypto startup tokens.
Binance’s Acquisition of TrustWallet, WazirX, CoinMarketCap, Swipe.
In 2018, Binance made its first strategic acquisition deal by buying Trust Wallet. Since then, the crypto company has gone ahead to acquire crypto platforms such as WazirX, and recently, CoinMarketCap and Swipe.
A move which was termed ‘not very good for the industry’ by some people. Perhaps, at the time, many of the top crypto platforms did not see Binance as a threat to their position. The same cannot be said of the current situation, as the exchange has started spreading into every part of the industry.
“CoinMarketCap has more users than any other product in the crypto space, it’s a really good website and I think we can help grow it further,”Binance CEO, Changpeng Zhao, commenting on the exchange acquisition of CoinMarketCap
Other arms of the Binance growing ecosystem includes; Binance Charity, Binance Academy, etc.
How did Binance become the largest cryptocurrency exchange in 3 years?
One important metric to Binance growth, we believe, is the company’s strategic partnership in regions where crypto has garnered serious attention. Similarly, its ability to make cryptocurrency trading seamless, has helped the company experience unprecedented growth.
Many of the cryptocurrency exchanges are still living in the crude era where a trader finds it challenging to convert their fiat to crypto. Through strategic partnerships, the Binance crypto exchange has made trading cryptocurrency easier for users.
“We’re looking for strong tech teams, acquisition will be a very key component to continuing to grow and contributing to this industry.” — Binance CEO, Changpeng Zhao
In Africa, for example, crypto traders in Nigeria, South Africa, Kenya and Uganda, amongst others, can buy bitcoin and top altcoins and trade on the same platform, using their local fiat currency through channels such as debit and credit cards, mobile money, etc.
Binance Announces Crypto Debit Cards
As reported, Binance will roll out it’s cryptocurrency debit card in August, starting with EEA based users. With crypto debit cards, there is no doubt that such a move will greatly boost adoption.
It is the company’s third anniversary, and the exchange has already positioned itself as a go-to source for everything that is cryptocurrency-related. From every indication, rival cryptocurrency exchanges seem to be scrambling to meet up with the Binance pace.
Can we see more companies, like Binance in the crypto Industry?