Binance has exceeded all expectations, including those of the CEO and founder Changpeng Zhao, or CZ spil he is known, to reach the number one cryptocurrency exchange ter just six months. Binance is arguably also the fastest everzwijn Unicorn reaching dual the valuation required (hitting $2billion) and is moreover profitable.
‘If you had asked mij a month ago when wij would succesnummer the number one spot,’ says CZ from Tokyo where he had not stopped working all overheen the holidays, ‘I might have answered six to nine months. If you had asked mij about unicorn status, I might have thought the same period. This growth has astonished even mij.’
Binance may be an overnight success but CZ has certainly waterput te the time and there is very little left to chance ter this flourishing exchange.
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With three lines of business: trading, incubation labs and Binance’s ICO Launchpad, things are moving very quickly.
Two ICOs have already bot flipped out on the Launchpad, GIFTO and Bread. The two ICOs raised $3million and $Trio.5million respectfully ter a matter of minutes.
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‘We are building a community of trust,’ says CZ. ‘Part of that is the release of ICO funds.’
Ter an sensational vraaggesprek with CCN, CZ exposed that the Binance Launchpad operates on trust. ‘Ironic,’ he admits ter the era of the blockchain. ‘But wij have an obligation to our traders and wij also work hard with the ICOs.’
CZ exposed that his Launchpad does not release the monies raised straight away. 25% is delivered postbode ICO and the remaining 75% is released based on milestones agreed and reached.
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‘Most ICOs do not need the utter amount on day one,’ says CZ. ‘This way wij can hold the ICO accountable for their work. It does not ensure their eventual success but it does winnow out scams and bad practice.’
‘We are operating like a traditional VC te some regard, but with more control,’ he explains.
Choosing the ICO is also an interesting job and one that will see a slew of enquires to the Exchange this year.
CZ is pragmatic about what ICOs he will look at. ‘In both the cases of GIFTO and Bread they had an established user colchoneta and a product that worked.’
However, he is also covering the software startup angle, having emerged from this industry himself. ‘We are setting up Binance Labs where wij can incubate technology startups — providing them the advice and support they need to progress to utter ICO status. This is a very titillating toneel too.’
The maturity of the Binance exchange is reflected ter CZ’s career. Approaching 40, he is no zuigeling faced whizz kid. CZ cut his teeth ter software startups and exchanges well before Binance wasgoed a twinkle ter his eye.
Educated at McGill University te Canada, his very first summer job wasgoed with a trading exchange te Tokyo. ‘The Tokyo Exchange out sourced development work to the company I wasgoed placed with and so I got early practice of coding for a trading environment.’
After he finished collegium, CZ wasgoed suggested work by the same company ter Toyko and spent the next four years there before moving to Fresh York and working for Bloomberg. But the entrepreneurial urge wasgoed strong and he next moved to Shanghai where he founded a startup with four other principals.
‘By 2013 I knew that bitcoin wasgoed significant,’ says CZ but he could not persuade his fellow directors and so he left. ‘Ironically they are keen to do something ter the space now,’ he says.
Next up he joined OKCoin te Beijing spil a co-founder and also met Roger Veraf te Tokyo. While they remain good friends, Veraf attempted to talk CZ out of running an exchange. ‘It just wasn’t on his radar or rente,’ laughs CZ who did not take Ver’s advice.
By , CZ knew he desired to set up his own company again. He looked at Poloniex and spotted the trading volume wasgoed very low — Bitcoin wasgoed only trading at $200.
‘So wij developed software to run trading exchanges. This is what I knew and I could pull together an experienced team.’
For the next two years CZ worked for 30 different exchanges, providing the trading software and support. This wasgoed his golden bullet. ‘Every exchange wasgoed different and wij learnt about every possible kwestie,’ he says. Except perhaps the speed of his own company’s growth.
Te when CZ determined to build his own exchange he had all the practice gathered from his 20 years working ter trading software. He had seen first-hand the problems and the challenges facing popular exchanges.
‘Often an exchange will take an effortless route to market — because of cost or speed,’ says CZ. ‘We built ter scalability from the beginning.’
CZ reckons the current number of users, standing at Three.4million and climbing by 100,000 a day, could lightly scale to 50million or 100 million.
‘However, where wij are hurting is ter the support. Wij have 50,000 outstanding support tickets and wij cannot hire people rapid enough. The growth is gigantic but so too is the learning curve for fresh users. Most of those tickets require human intervention,’ he says ruefully.
Part of the solution may be the role of community ter Binance. CZ wasgoed very keen from the commence to provide an open solution and listen to the community. Binance angels and community volunteers have grown much swifter than even CZ expected.
‘People love to be part of a successful project,’ he says. ‘We listen to our community and volunteers. The community has voting rights on our coin. This is very significant to our ethos and development.
‘This is not a brief win, wij are ter for the long haul. Wij see this at least spil a ten year project.’
The odds are looking good. Already there is yam-sized rente ter the two spin off arms of the business, the incubation labs and Launchpad. CZ believes strongly the community needs to trust each other. ‘I know, it’s funny to repeat that word trust,’ says CZ, ‘but it is core to Binance and its success.’