BINANCE: HOW IT STARTED?
Founded in the year 2017, Binance offers a platform to trade various cryptocurrencies. In April 2021, Binance was the largest cryptocurrency exchange in the world in terms of trading volume.
A combination of bitcoin and finance is what gave Binance its name. Multi-tier and multi-clustered architecture guarantees safety and security and can process around 1.4 million orders per second. The platform supports trading in over 150 coins, including popular ones like Bitcoin, Ethereum, and Litecoin, with a growing list of supported tokens.
HISTORY
In April 2018, Chinese-Canadian Zhao Changpeng aka “CZ” became the CEO and co-founder of the world’s largest cryptocurrency exchange by trading volume, Binance. He previously led Blockchain.info’s development team and was chief technology officer at OKCoin.
After the Chinese government banned cryptocurrency trading in September 2017, the company moved its headquarters and servers out of China to Japan, before moving to Taiwan once again in March 2018.
Despite competition from Coinbase and others, it has retained its title as the largest cryptocurrency exchange in January 2018 with a market capitalization of $1.3 billion
It was announced in March that Binance would open an office in Malta following the stricter regulations in Japan and China. Binance signed a Memorandum of Understanding (MoU) with Bermuda’s government in April 2018. An agreement to develop a security token platform for the Malta Stock Exchange followed months later. A separate exchange from its parent company, Binance.com, was launched by the company in January 2019 and will focus on expanding its influence across Europe.
With Binance joining three other big exchanges for a stable coin project, Binance raised $32 million in August 2018. Stable coins are a cryptocurrency that develops a more stable and predictable value rather than the volatile value of Bitcoin and other digital assets.’
This plan was announced at the beginning of January 2019 by Binance, the cryptocurrency exchange. The company partnered with the Israeli payment processor Simplex to receive cryptocurrency payments using credit and debit cards.
On 7 May 2019, Binance revealed that its database had been compromised, which had led to the theft of around 7,000 Bitcoin, worth around the U.S.$40 million. The site offered customers reimbursement through its “Secure Asset Fund for Users (SAFU)”. Withdrawals resumed on 19 May.
A perpetual future contract, allowed by the exchange as of September 2019, allows a leverage of up to 125 times the contract value. As of November 2019, Binance acquired India’s WazirX Bitcoin exchange.
Maltese financial regulatory authority MFSA issued a statement responding to media reports referring to Binance as a “Malta-based” cryptocurrency company on 21 February 2020. This statement said Binance “is not authorized by the MFSA to operate in the cryptocurrency space and as such is not subject to regulation by the MFSA.” The agency also said it was investigating whether Binance has any activities in Malta that do not comply with regulatory oversight.
Forbes staff published leaked documents alleging that Binance and Changpeng Zhao rigged their corporate structure to intentionally deceive US regulators and secretly profit from crypto investors in the US on Oct 28, 2020. In addition to blocking IP addresses in the United States, Binance will teach potential customers how to bypass geolocation restrictions, Forbes reported.
Trading on Binance
Binance offers a variety of services for cryptocurrency exchanges, including trading, listing, fundraising, and de-listing. Cryptocurrency enthusiasts can use Binance to launch their tokens to raise funds via initial coin offerings (ICOs). The Binance cryptocurrency exchange allows cryptocurrency enthusiasts to launch their tokens to raise funds via initial coin offerings (ICOs).
Binance Coin (BNB)Binance Coin (BNB) is the cryptocurrency exchange’s internal token, which is used to facilitate crypto trading. It was introduced during a July 2017 ICOA total of 10%, or 20 million BNB tokens, were distributed to angel investors. In the ICO process, 40% or 80 million tokens went to the founding team, while 50%, or 100 million tokens, went to the various participants. The ICO raised almost half of the total funds needed to market and brand Binance; approximately one-third was needed to complete the Binance platform and upgrade the Binance ecosystem.
In Q1 2021, one BNB token was worth approximately $650. It was the third most valuable cryptocurrency by market cap, at roughly $3.6 billion. Binance Coin runs on the Ethereum blockchain using the ERC20 standard
Reasons to Buy Binance (BNB)
Coins Low cost
Since BNB is a cheaper alternative to Bitcoin, it makes it a more attractive way to buy other cryptocurrencies. You can freely trade BNB on the Binance platform.
Availability and demand
BNB’s value continues to rise due to its fast-spreading fame, which has reduced its supply. Supply and demand are the factors vital to a currency’s value in a digital exchange. Bitcoin’s value has grown due to its 21 million supply limit.
The community’s trust
A prime reason for Binance’s rise is its ease of use as well as a withdrawal limit of $30,000. Investors are drawn to BNB because it was built with robust, ERC-20 principles. It was also affiliated with the NEO coin which helped spur its growth.
Growth
BNB currency grows at the same pace as the Binance platform, because it is built on the same infrastructure as Bitcoin.
Advantage of Binance
- It provides funding to deserving cryptocurrency project teams for development as well as advisory resources and a platform for listing and fundraising. Binance Labs is Binance’s blockchain technology incubator.
- Aside from Binance, other platforms, tools, and services are available to support the blockchain ecosystem.
- In addition to Binance LaunchPad, the company offers a new platform called LaunchPad, which hosts new and emerging blockchain projects and API interfaces. To date, 42 projects have been launched on LaunchPad.
- A Binance Coin ICO was launched in July 2017 and has gained popularity. A native cryptocurrency has started to be used by a decentralized exchange based on this coin which is active and has a market cap of approximately $36.4 billion.
