Binance was founded in July 2017 by the Chinese-Canadian entrepreneur Changpeng Zhao (known as CZ) together with Yi He, after raising $15 million through an Initial Coin Offering (ICO) of its $BNB token.
The project emerged and grew rapidly thanks to the following key factors:
ICO funding: In July 2017, the platform launched its own token (Binance Coin or $BNB) via an ICO. The fundraising enabled the platform to be built and scaled quickly.
Technical advantage: Zhao used his prior experience developing high-frequency trading software. Binance was designed to process up to 1.4 million orders per second, far exceeding the capacity of the competition at the time.
Purely crypto-focused: Unlike other exchanges of the era that relied on integration with banks to operate with fiat money (such as dollars or euros), Binance began operating exclusively crypto-to-crypto. This allowed it to avoid early regulatory hurdles and expand globally at great speed.
Low fees: The platform offered significantly lower transaction fees than its competitors and provided an additional discount to users who paid their fees using the BNB token.
Accelerated growth: In just six months after its launch, Binance became the largest cryptocurrency exchange platform in the world by trading volume.
The project emerged and grew rapidly thanks to the following key factors:
ICO funding: In July 2017, the platform launched its own token (Binance Coin or $BNB) via an ICO. The fundraising enabled the platform to be built and scaled quickly.
Technical advantage: Zhao used his prior experience developing high-frequency trading software. Binance was designed to process up to 1.4 million orders per second, far exceeding the capacity of the competition at the time.
Purely crypto-focused: Unlike other exchanges of the era that relied on integration with banks to operate with fiat money (such as dollars or euros), Binance began operating exclusively crypto-to-crypto. This allowed it to avoid early regulatory hurdles and expand globally at great speed.
Low fees: The platform offered significantly lower transaction fees than its competitors and provided an additional discount to users who paid their fees using the BNB token.
Accelerated growth: In just six months after its launch, Binance became the largest cryptocurrency exchange platform in the world by trading volume.