As cryptocurrencies started gaining more attention from the mainstream, several entities jumped to create a digital asset trading platform. One of them was Binance, an exchange that not just launched itself quickly but also came to life using an initial coin offering (ICO). As it has become the largest crypto exchange in the world by trading volume, it is important to think about the reasons that made Binance top the list of crypto exchanges. One of them is the Binance Coin (BNB), a token that has witnessed an explosive growth phase, just like its native exchange.
What Made Binance So Popular?
In early 2017, Changpeng Zhao laid the foundation of Binance, followed by an ICO for Binance Coin in July, which raised $15 million for the company. ICOs were still an exciting new opportunity around that time. Within 143 days of launch, Binance became one of the top three crypto exchanges in the world. As time passed, Binance experienced a fivefold growth in its user base, going from two million to more than 10 million. The exchange is now predicting $1 billion in profit.
BNB lets users reduce their fees. The lower fees, cash-backs, etc. made Binance a relatively cheaper exchange. Users could not only use BNB to pay fees but also hold it as an investment.
While the initial buzz around BNB and the subsequent promotion by the exchange for paying fees can be important factors that led to Binance’s growth, it is the technological aspects of the exchange that helped it win.
For instance, the exchange can handle over 1.4 million orders per day and can comfortably host 20 million users, as well as provide them with multilingual support. This technical strength has allowed the exchange to enable more people to trade smoothly without slowing down. This, in turn, helped in improving customer experience.
Favoring New Cryptocurrencies
While Binance allows users to trade in some of the most popular cryptocurrencies, it has also become a hub for newer coins and tokens. Though its fondness of listing new coins sooner has created controversy for the exchange when it was accused of charging hefty amount for listing in the past, Binance has been going strong and adding new cryptocurrencies to its platform. It even listed three stablecoins — Tether, TrueUSD, and Paxos.
The exchange also planned smartly using its awareness of all the latest crypto developments. For instance, when regulatory pressures started building up, it quickly shifted base to Malta, a small European nation with friendly blockchain and crypto regulations. These laws have also been helpful in ensuring that new coins and their fiat pairs get listed without strict know-your-customer and antimoney laundering rules, and more users are attracted to the exchange.
How Did the Two-Year-Old Binance Become the Largest Crypto Exchange in the World? was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.