Binance: Historical Background
Founding and Early Years:
Founders: Binance was founded by Changpeng Zhao (CZ) in 2017. CZ, a veteran in the cryptocurrency industry, had previously worked at OKCoin and Blockchain.info.
Launch Date: Binance launched its cryptocurrency exchange platform on July 14, 2017.
ICO and Funding:
To fund the platform's development, Binance conducted an Initial Coin Offering (ICO) for its native cryptocurrency, Binance Coin (BNB), in July 2017.
The BNB token played a crucial role on the Binance platform, offering users various benefits such as reduced trading fees and participation in token sales.
Rapid Growth:
Binance experienced rapid growth, quickly becoming one of the largest cryptocurrency exchanges globally within a short period.
The platform gained popularity for its user-friendly interface, low trading fees, a wide range of supported cryptocurrencies, and innovative features.
Innovations and Expansions:
Binance introduced various innovations, including the launch of the Binance Launchpad for token sales and the creation of Binance Labs to support blockchain projects.
The exchange expanded its services to include futures trading, margin trading, staking, and a Binance Smart Chain, a parallel blockchain to Binance Chain.
Security Incidents:
Binance faced security incidents in its early years, including a notable hack in May 2019 that resulted in the theft of over 7,000 BTC. However, the platform took swift action, reimbursing affected users and enhancing security measures.
BNB's Role and Burn Mechanism:
Binance Coin (BNB) continued to play a significant role within the Binance ecosystem. The platform implemented a token burn mechanism, regularly using a portion of its profits to buy and burn BNB tokens, reducing the total supply over time.
Global Dominance:
Binance became known for its global reach, providing services to users in numerous countries and supporting a vast array of cryptocurrencies.
CZ's Leadership:
Changpeng Zhao's leadership style and his active engagement on social media contributed to Binance's visibility .
