Binance starts again after five years to make Web3 bigger

Since the birth of Bitcoin in 2008, the entire history of encrypted financial development has been more than ten years.

In the past five years, the bull-bear cycle of the market may be an insurmountable gap for the vast majority of crypto companies. Even if they barely survived the life-and-death line, the vast majority of encryption companies do not have deterministic business models or excessive competition in sub-tracks, and their survival conditions are still worrying.

But for Binance, in the first five years of its business process, it not only survived, but also achieved rapid development, and developed in multiple lines other than transactions, forming a comprehensive Crypto group. The rise of Binance not only contains historical opportunities, but also cannot be separated from the correct choice and unremitting efforts of the team, as well as compliance and innovation throughout the entire development process.

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1. Binance Achievements: The No. 1 Exchange in the Encryption Trading Field

Encrypted finance has officially entered the "Great Voyage" adventure era, and more and more countries, governments, and multinational companies have shifted their attention to digital assets. Binance, as a Web3 native encryption company, has already landed on the beach.

The start of Binance is inseparable from the success of the encrypted trading business.

In 2017, the encryption market ushered in a short and crazy bull market, and major trading platforms emerged one after another. As a rising star, Binance was not favored by the market. However, in just 165 days, Binance made a strong counterattack and successfully entered the first-line trading platform, becoming the largest cryptocurrency spot exchange at that time. Since then, Binance has continued to enrich its trading business. In the second half of 2019, it focused on derivatives contracts, captured traffic again, and successively launched C2C, lending and other services. The network effect has been strengthened, which not only improves efficiency, but also enhances security.

Today's Binance has long since developed into a full financial service platform with more than 6,000 employees worldwide. According to data from CryptoCompare, Binance's spot crypto transaction volume in January was slightly more than 500 billion U.S. dollars, ranking first, nearly four times that of the second place. times more. According to Binance official data, as of July this year, Binance supports 18 service languages ​​around the world, and the cumulative number of KYC-certified users exceeds 120 million, which is equivalent to 1 Binance user for every 66 people in the world.

After the trading business has become a top stream, in order to meet users' demands for more innovative blockchain products, Binance has also continued to expand its business boundaries, explore new growth points, and develop in multiple lines, and has developed into a comprehensive blockchain The group mainly focuses on investment, technology research and development (public chain), financial management, stable currency, NFT, payment, charity and other dimensions.

Taking investment as an example, since 2018, Binance Labs has invested and incubated more than 200 projects around the world. The representative project is Polygon, which is also one of Binance Labs' most successful investments. In June of this year, Binance Labs completed the raising of a US$500 million fund, ready to invest in blockchain, Web3 and other value-creating technologies.

In terms of the public chain, one of the most important achievements of Binance is the launch of BNB Chain in 2020, and the launch of the "100 million US dollar fund" and "liquidity incentives" to meet the growing business needs of DeFi. In the past year alone, the transaction volume on BNB Chain has exceeded 2.4 billion, and the number of projects on the chain has exceeded 1,200. BNB Chain has also become the most active Layer 1 network.

After long-term accumulation, Binance has made remarkable achievements in various businesses:

• BUSD: The total market value is 18 billion U.S. dollars, ranking sixth; the market value of the stablecoin market ranks second only to USDT and USDC, and is one of the few stablecoins that are fully licensed and supported by legal tender;

• Binance Card: More than 1.7 million cards were issued in the European Economic Area within two years, with strong user demand;

• Binance Pay: 17 million transaction volume, more than 12 billion US dollars in transaction value, more than 7,000 merchant networks, and millions of users;

• Binance NFT: more than 600,000 weekly active users, a total transaction volume of IGO drops of 1 billion, and 3 million game NFTs on the shelves; strategic cooperation with more than 100 entertainment projects, top stars, players, etc.;

• Binance Wealth Management: From January to June 2022, the number of active users will increase from 3.7 million to 4.9 million, and the number of assets will increase from 183 to 268;

• Binance Charity: The total number of donations exceeded 5,000; the total number of benefits exceeded 1.8 million, and a total of 2,880.352 BTC was raised. The main projects include "Code to Inspire: Women in Afghanistan", new projects supported by the Ukrainian state, encrypted assets against the epidemic, Tree Millions, etc. .

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2. Binance Core: Compliance and Innovation

"All our achievements today come from the trust of users. We have always taken user-centricity as our core value. Everything we do is to tell users: We are worthy of your long-term trust. We must continue in the future Sustainable and responsible ways to promote industry development and innovation while protecting users.” CZ said in the fifth anniversary open letter.

When it comes to the factors of Binance’s success, many people think that it is the first-mover advantage that made Binance, but it is not always the case. In the past five years, the crypto market has been in a bull-bear cycle, and a large number of trading platforms have been born and then declined. The core of Binance's long-term prosperity lies in innovation and compliance.

In terms of innovation, Binance is the first encryption platform to launch IEO. At the beginning of 2019, Binance launched IEO (Initial Exchange Offering) for the first time, injecting new vitality into the downturned spot market. The huge wealth effect also made Binance earn a lot of attention. The follow-up IEO projects have pushed the traffic of Binance to rise in a straight line, and Binance is also one of the platforms that has been insisting on IEO so far, and the followers are no longer active.

In addition, Binance is also the first encryption platform to start the destruction of platform tokens. It insists on destroying BNB with profit repurchases, and empowers more application scenarios (IEO, public chain, etc.) for BNB. Currently, the market value of BNB ranks among the top five in the world. At that time, it was second only to Bitcoin and Ethereum, ranking third in the global market capitalization.

In addition to innovation, Binance has always adhered to the compliance route. Founded in 2017, Binance positioned itself as an international trading platform, expanded its target users to the world, and avoided the stock market in the mainland; and only allowed currency transactions to avoid touching the restricted area of ​​legal currency supervision. Two months later, when many exchanges in mainland China closed down one after another, Binance's global strategic goals enabled it to stand alone and lay a user base for subsequent development.

In the next few years, as encrypted finance was widely accepted and gradually matured, global governments and regulatory agencies began to strengthen supervision and tighten policies. Binance continued to implement the compliance strategy and continued to obtain encryption licenses in many countries and regions around the world. Binance co-founder He Yi also said that Binance's core strategy in 2022 is still to promote compliance globally. “We are making some good progress. We are massively expanding our compliance team to recruit professionals and aim for 100% completion of Know Your Customer (KYC) on our platform. "

In the first half of this year alone, Binance has successively obtained Bahrain’s Type IV license, Dubai’s fully regulated virtual asset (VA) trading platform license, Abu Dhabi Global Market’s approval-in-principle, and France and Italy’s approved registrations. license. At present, including Binance.US, the Binance brand has obtained registration licenses in the United States (46 states), France, and Italy in G7 countries. Recently, Binance Spain “Moon Tech Spain, SL” has registered with the Bank of Spain as a Virtual Asset Service Provider (VASP).Recommended reading "EU, Middle East, North America, How Binance Changpeng Zhao Promotes Global Compliance?" "

In addition to applying for a license, Binance is also technically implementing advanced detection tools for access in some areas. “Our (Binance) monthly costs related to anti-money laundering and KYC are actually higher than marketing costs. In this industry, there is no transaction that does better than Binance in terms of anti-money laundering, KYC, security, etc. platform." He Yi introduced.

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3. The Future of Binance: Making Web3 Bigger

In February of this year, Forbes Media (Forbes), an American business media with a history of 100 years, announced that it had obtained a strategic investment of 200 million US dollars from Binance. This investment case sparked a lot of discussion for a while.

In addition to investing in Forbes, Binance has also invested in other traditional track projects, starting a crazy layout mode. For example, Binance invested US$500 million to help Musk acquire Twitter; Binance announced a strategic partnership with Korean entertainment companies YG Entertainment and SM Brand Marketing. NFT ecosystem.

"Our strategy is to make the encryption industry bigger." Changpeng Zhao introduced the motivations of Binance's series of investment behaviors. "We hope to identify and invest in one or two targets in each economic field, and try to introduce them into the encryption field."

In addition, Binance has also sponsored several sports events and cooperated with many celebrities to increase the promotion of crypto finance:

• At the beginning of this year, Binance officially announced that it will cooperate with the Confederation of African Football (CAF) to become the official sponsor of the 2021 TotalEnergies Africa Cup of Nations (AFCON);

• Binance has cooperated with the Argentine Football Association (AFA), one of the largest football federations, to become its main sponsor, and will cooperate to issue fan tokens in the future;

• Binance becomes the exclusive cryptocurrency sponsor of the Brazilian Football League;

• Binance became the official encrypted asset trading platform partner of the 64th Annual Grammy Awards;

• Binance teamed up with Cristiano Ronaldo to exclusively create a legendary NFT collection (C Ronaldo);

• Binance teamed up with The Weeknd to create the world's first Web3 tour event.

• TikTok star Khaby Lame joins forces with Binance to raise cryptocurrency awareness;

At present, the scale of encrypted finance is only 1 trillion US dollars. Compared with the traditional market, it has a stronger room for growth. Many people do not understand Web3 and its impact. How to attract users to this new field and bring growth to the encryption market is a question that all Web3 practitioners have been thinking hard about.

Binance has taken the lead, increasing the popularity of Web3 and encrypted finance through circle-breaking activities and investments. From the beginning to the end, Binance has always insisted on expanding the industry, because founders such as Changpeng Zhao believe that only when the industry is bigger, there will be more opportunities.

"It's very important for us to grow the industry, the market is still young. The more people involved, the more opportunities will emerge within the industry. If you're the only one involved, then you're in the wrong place. industry. We want Binance to be the gateway to the Web3 world, providing a set of simple, accessible, compliant, and trusted tools for billions of users entering the new Web3 world.”