The History of Binance: The World’s Current Largest Crypto Exchange

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What Are Cryptocurrency Exchanges?

Cryptocurrency exchanges help users trade cryptocurrencies for other assets, including fiat and digital currencies — in short, they work as an intermediary between a seller and buyer. It also facilitates making money through transaction fees and commissions.

The Humble Beginnings of Binance and Its Founder

Changpeng Zhao (commonly referred as CZ) launched Binance in July 2017. However, his journey wasn’t easy. As a Chinese-born immigrant in Canada, he had to take on odd jobs to help support his family. In fact, he worked at a McDonald’s at one point.

The Launch of Binance Coin (BNB)

Before being transferred to the Binance chain, the platform’s proprietary blockchain, the Binance coin or BNB was launched on the Ethereum blockchain. Yi He, Binance’s co-founder, said the token has significantly contributed to the platform’s success. He even described it as the one fueling the Binance engine. To raise funds for Binance, CZ and Yi He made BNB. In addition, it offers a suitable alternative to pay for transaction fees charged to traders.

Binance Timeline History

2017

Changpeng Zhao (CZ) and Yi He founded Binance in China; however, most of their servers moved to Japan in September 2017. That’s because the Chinese government started heavily regulating the crypto market.

2018

Binance has become the largest cryptocurrency exchange platform in the world, with revenue exceeding $1.3 billion. In March, CZ tried to move its headquarters to Malta because Japan began implementing stricter crypto regulations. In addition, the company started to initiate paperwork with Malta and Bermuda to develop a security trading platform.

2019

In January 2019, Binance worked with Simplex to provide crypto purchases with a credit or debit card. In May, Binance announced they were victims of an attack where they lost $40 million. In September of the same year, they started offering perpetual futures contracts that allow 125x leveraging.

2020

In October, Forbes released documents that showed Changpeng Zhao had created a structure designed to deceive US regulators and profit from US-based investors. In September, they launched their blockchain ecosystem BSC, or Binance Smart Chain.

2021

In May 2021, the US Department of Justice and IRS investigated the company for potential tax avoidance and money laundering. Today, these investigations are currently ongoing.

2022

In February, Binance invested in Forbes for $200 million. That same year, they also announced they wouldn’t cease operations in Russia. Over time, that claim would change, as they began restricting Russians with more than 10,000 Euros from trading on the platform.

Binance Is Here to Stay

In this digital age, numerous cryptocurrency exchange platforms are competing to pique users’ attention. A cryptocurrency exchange platform should have incredible offers to stand out from the rest of the competition, and that’s what Binance offers.

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