Note: The original text comes from an open letter to the community released by Binance’s new CEO Richard Teng, compiled and translated by Mars Finance.
Dear Binance Community,
As 2023 comes to a close, I wanted to share a few reflections with you as the new CEO of Binance, and one of the many Binancians who have worked throughout the year to advance the freedom of money - after all, my tenure at the helm of this incredible organization only began in November. If I had to sum up my message in one sentence, it would be that heading into the new year, the Binance community has every reason to look to the future with optimism and hope.
In 2023, we not only maintain our strength as a strong company and leader in the world’s most dynamic industry, we also dare to embrace change and become stronger. The haze of historical issues in the United States has dissipated as we have reached a resolution with US regulators. Binance’s culture, talent, and expertise are in place to become a truly compliance-led organization, as well as a user-centric organization, structured and prepared to lead the digital asset industry into a new era.
Real trust
The past few weeks have shown that this assessment is well-founded and that our users have great faith in us and our vision for the future. Following the announcement of the US resolution and the leadership changes at Binance, net inflows have been very strong and new users continue to increase steadily. As of the end of December, we surpassed the 170 million registered users mark, up 30% from last year. Actions speak louder than words, and your tangible support means a lot to us as we begin this new chapter.
Importantly, we saw particularly strong growth in inflows from institutional investors. I think this is great news because it signals growing trust in Binance and the greater Web3 ecosystem, at a time when institutional participation, along with clear regulation, is key to mass adoption of digital assets. This year, we’ve already introduced exciting innovations, such as our innovative bank tripartite agreement, that provide unparalleled value to this important customer segment, and we’ll have more to come next year.
Paving the way for Web3
Our most important commitment, as always, remains to our users. No changes in leadership or corporate governance can alter this cornerstone of Binance’s DNA: building and delivering products that make people’s lives better. Responding to and anticipating user needs has led us to participate in (and often lead) some of the key trends in the digital asset space in 2023.
To meet the growing demand for a safer and more convenient entry to the Web3 world, we launched the Web3 Wallet, which has been very popular since its launch. In line with the trend of a more engaging Web3 social experience, we revamped Binance Square, whose user base and number of active creators have doubled this year, and launched the social copy trading feature.
In 2023, Binance achieved significant growth in key services such as cryptocurrency payments, P2P trading and earning income, making solid progress on the road to democratizing digital assets. The number of active users of Binance Pay grew by 20%; the number of users of Binance’s P2P platform services grew by 39%; and Binance Earn helped 35% more people put their cryptocurrency to use than before. For a full look at Binance’s performance in 2023, you can read our just-released year-end report.
Most importantly, we remain laser-focused on the security of our users and their funds. From working with global law enforcement to combat criminal activity in the digital asset space, to conducting educational campaigns for our users, from maintaining our SAFU fund (valued at $1.2 billion at year end), to expanding the coverage of our Proof of Reserves system, the security and transparency of our users’ funds are our top priorities at Binance.
Looking ahead
We have many reasons to be excited in the new year. Binance is beginning its new chapter with solid financials and the trust of a global community that is rapidly expanding. This organization will continue to grow — not for years, but for decades. Of course, building the future of finance and advancing monetary freedom around the world is a long and bumpy road, but we are ready to work toward this goal in a thoughtful, iterative, and incremental manner. With the unwavering support of the Binance community, we have proven that no challenge is insurmountable.
As we move forward, we will balance our commitment to three key groups. First is our most important stakeholder: our users. Second is global regulators, who will play an increasingly important role in shaping the future of our industry and its ability to realize the vast potential of blockchain and digital assets. Finally, we will place a high priority on building and maintaining industry partnerships - we are all in this together, and the best way to build a stronger ecosystem is through coordination and collaboration.
Finally, I want to thank the resilient, tenacious, and mission-driven team at Binance for all they have accomplished for us despite headwinds. I am honored and delighted to lead this uniquely diverse team of talented and dedicated professionals. I look forward to achieving even greater things with all of you in 2024 and beyond.
Happy New Year!
Richard Teng
