With all of the uncertainty happening during the past months, the looming bear market and the FTX collapse, the more informed we are, the better.
Since knowledge is power, let's dive in into the past and the origins of Binance, so we know where it came from and can guess where it will head.
Binance is a cryptocurrency exchange platform that was founded in 2017 by Changpeng Zhao, also known as "CZ." The company is headquartered in Malta and has become one of the largest and most popular cryptocurrency exchanges in the world.
Before starting Binance, CZ had a successful career in the tech industry, including working as a developer at Blockchain.com and as the chief technology officer at OKCoin, a Chinese bitcoin exchange. He saw the potential for cryptocurrencies to disrupt traditional financial systems and decided to create a platform that would make it easy for people to buy and sell digital assets.
Binance was initially based in China, but the Chinese government's strict regulations on cryptocurrencies led CZ to move the company to Japan in 2017. Later that year, the Japanese Financial Services Agency ordered Binance to stop operating in the country because it did not have a license to do so. This led CZ to relocate Binance to Malta, which has a more favorable regulatory environment for cryptocurrencies.
Binance quickly gained popularity among cryptocurrency traders due to its low fees, fast transaction processing times, and wide selection of digital assets. In 2018, the company launched Binance Coin (BNB), its own cryptocurrency that is used to pay fees on the Binance platform. BNB has become a popular cryptocurrency in its own right and is often used for speculation and as a store of value.
In addition to its core exchange business, Binance has also diversified into other areas of the cryptocurrency industry. For example, the company has launched a decentralized exchange called Binance DEX, as well as a platform for initial coin offerings (ICOs) called Binance Launchpad. Binance has also entered into partnerships with other companies to offer a range of services, such as a cryptocurrency debit card and a peer-to-peer trading platform.
Binance has experienced rapid growth since it was founded, and it is now one of the most well-known and influential companies in the cryptocurrency industry. Its success has made CZ one of the wealthiest individuals in the sector, with a net worth that has been estimated to be in the billions of dollars.
Taking all of this in consideration, there is one thing that becomes apparent. It's going to take a lot more than simple fund mismanagement for Binance to go down, and for now, it seems it's here to stay.
