Happy First Birthday Binance (BNB): World’s Most Used Crypto Exchange Turns 1
Out of all the Cryptocurrency exchanges available across the world, Binance is one of the largest, recently headquartered in Malta, it's gained a strong reputation as having extremely low trading fees including a very well performing coin of its own.
Binance is well on its way to being an internationally recognized exchange, offering 24/7, multilingual support for those that use it. Though originally based in Shanghai, Binance has since moved operations across to Malta as a consequence of China's hardline approach towards cryptocurrencies and Malta's exceptionally pro-crypto one.
Currently, Binance only allows for deposits in cryptocurrency because fiat currency deposits and withdrawals have yet to be added to the system. While there are no fees for deposits made, withdrawals do incur a fee.
Binance currently has a strong number of coins available through its platforms such as Bitcoin, Litecoin, Ethereum and Cardano, and also includes some lesser-known alt-coins such as IOTA and Waltonchain.
A Brief Review of Binance's Historic First Year
Originally established on July 14th 2017, its ICO was able to successfully raise over $15 million in just under two weeks, in which Binance's coin (BNB token) was given away to backers of the ICO, with the additional perk of being able to side-step the listed fees that average users of the platform would incur.
The company was set up by Changpeng Zhao and Yi He. Before establishing Binance, Zhao previously worked as the CTO of at OKCoin, a platform that allows for users to complete spot trading between cryptocurrencies and conventional Fiat.
Zhao had also previously founded Fusion Systems in 2005, which used to develop hardware and trading systems for stock / trading brokers. In 2013, he joined Blockchain.info before departing to establish OKCoin.
Yi had also worked alongside Zhao at OKCoin as the head of its marketing and branding.
Binance's First Year – Notable Achievements
Binance was able to celebrate its first year of operations on July 14th of this year, and the volume of celebrations are very well deserved according to its financial team.
Over the span of just 42 days, Binance had managed to move from relative obscurity to become one of the worlds top 10 largest cryptocurrency exchanges. And over the course of 165 days, managed to become the single largest coin exchange in the world, outpacing its older contemporaries.
These achievements are all down to its unique business model, and a highly adaptable and capable team piloting Binance. Here are some of the other achievements they've managed to accomplish in this short, large rise:
- 143 tokens and coins listed with 370 trading pairs
- Dedicated mobile trading apps on Android and iOS, also desktop client platforms for Windows and macOS
- Other developments in the Binance ecosystem that includes Binance Labs, Binance Launchpad, Binance Info, Binance Uganda
- Availability of Binance in 12 languages, including English, Korean, Russian, Spanish, Vietnamese, and others
- The first exchange to distribute monthly NEO GAS to NEO holders, with 488,399 NEO GAS distributed in this first year
- Also, 903,914,016 airdrops and fork tokens were distributed on Binance in the first year
- Handling of mainnet token swaps for holders of listed tokens
- Trading competitions and lucky draws that have given out over 4,000 BTC worth of token and coins
- 24/7 customer support that handled over 200,000 support requests, helping over 1,300 people recover over $1.3B
About the Binance Coin
By holding the Binance coin, users are given special discounts on the exchange, those being a 50% discount throughout their first year of operation and a very low trading fee of 0.1%. But what exactly is Binance Coin?
To start off, it's an ERC20 token that was developed to further support the business and their subsequent ICO.
With the conclusion of Binance's first year, this discount was reduced to 25%, with the discount reducing annually, so as it reaches its 3rd, 4th and 5th years, the discount will slide to 12.5 to 6.25% and be removed after then.
In total, there were approximately 200 million of them distributed during the ICO with a starting price of roughly 0.00005BTC. As listed in their White Paper, Binance would buy back a certain amount of these coins and initiate a coin burn, preventing them from being re-used. Overall, they aim to burn 100 million of them with over 7 million burned so far.
This operates to coincide with the alterations to supply and demand, as demand dwindles for these coins, Binance will gradually work to decrease supply, thereby keeping prices relatively stable.
Once it's fulfilled its initial function as a discount token, it will blend seamlessly into the exchange as a token in its own right.
On May 18th of this year, Binance announced that it will provide a referral commission rate for users holding more than 500 BNB will become 40% from 20%. This creates another demand for BNB.
What's the Future got in Store for Binance Exchange and BNB Coin
While demand gradually depreciates as the impact that it has on the exchange decreases, but with the burning of tokens, supply is expected to stay relatively close to the depreciating demand, preventing any erratic value fluctuations.
Binance is proving themselves proactive in setting a certain level of value thanks to instances like the announcement that commission rewards would double for holders of over 500BNB tokens. This aspect means that there is a deeper incentive for holding onto the tokens longer-term.
While starting off with a value of 0.00005 BTC recently hit highs of over 0.0026325BTC as the benefits of possessing them began to strongly resonate with the exchange's users. One of the benefits of having BNB early on was that it proved to be resilient in the face of a challenging market; retaining its value even during the recent bearish trends in the crypto market.
As the Binance exchange continues to grow internationally, the value of the BNB tokens is expected to still have a strong metric of value. One example of this is the introduction of the Binance Chain to the community, and how it will work in conjunction with the BNB.
What's Upcoming for the Binance Ecosystem?
There are already exchanges that have begun to accept fiat to crypto exchanges within Binance's broader system. One example of this is Binance Uganda, which announced this recently.
Binance itself have also announced and introduced its community to its own blockchain, referred to as the Binance Chain, with the existing Binance tokens being upgraded to allow them to exist on the chain's mainnet.
Binance has also partnered up with The President’s Trust in Malta to create the Binance Blockchain Charity Foundation.
Looking Back At The World's Most Used Crypto Exchange Summary
Even at such an early stage in its life, Binance has been nothing if not a monumental cinderella story for the first year, with more expected to come from it in the future.
One example of this is its ability to accrue over $1 billion in the short space of 6 months, this success hasn't been without its fair shares of setbacks, potential hacks, and risks, however.
While it maintains its currently level of dynamism and capability regarding managing its product, chain, and token, there are few that can hope to challenge Binance as it continues to grow.