Binance has become one of the remarkable success stories in the cryptocurrency world. It was founded in early 2017 by Changpeng Zhao, with the ICO being completed the same year in July for the BNB token.
Barely five months later, at the end of 2017, Binance became one of the top three cryptocurrency exchanges globally. In the first six months of 2018, the platform went through an incredible growth from two to over 10 million users, and with that growth, they are predicting to make over $1 billion dollars profit, as reported by Forbes.
What is behind the success of Binance?
The Binance Coin – more than low transaction fees
One of the key factors to the success of Binance was their BNB coin. It was introduced as a utility token to help users achieve lower transaction fees on their exchanges. It is a small, but significant reason in solving a real problem in crypto transactions. With the growth of the Binance exchange, the token became more and more significant; and vica versa. The spread of the use of the token drew more and more people to Binance. Currently, Binance is on the 14th place in terms of market capital on the crypto market and the 19th coin to be traded more in 24 hours.
According to Hi-Ye, Co-Founder of Binance, the token had another key role in making Binance a success – it was a great tool in building the initial community and getting the first users of the platform.
The token now is also used to vote in Binance’s “Coin of the Month” for the community to choose which coins would they like to see listed on the exchange and Binance’s “Launch Pad” initiative where startups can raise capital. These programs have enriched BNB to be much more than a discount coupon for trades – it provides a tool for the community.
Steps to success
Binance did not just show how to make a great utility coin. The exchange enables 1.4 million transactions per second and can host about 20 million users, with multilingual support and take on challenges with speed and scaling.
Binance is also more open to listing new tokens without the strict regulations that other exchanges face by trading fiat currencies. Binance has moved their operations to Malta, where regulations tend to be more crypto-friendly.
Through all the steps of Binance’s success we can identify one key trait: Binance is focused on solving real problems in the crypto world and is continuously innovating to provide the best experience to its community. For the near future, Binance is planning to launch their decentralized exchange. In the long run, Binance is expected to be a pioneer of crypto innovation; hence, keeping their leading position in the market.
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