Binance is a centralized crypto exchange and the world’s largest crypto exchange based on traded volume. It was founded in 2017, by Changpeng Zhao (current CEO) and Yi He, and is located on the crypto-friendly island of Malta.
A trip into Binance’s past
Binance had a difficult time settling down. The company was founded and headquartered in China, but it soon moved to Japan, because the Chinese government banned cryptocurrency trading in September 2017. In Hong Kong, Binance tried to negotiate with the Securities and Futures Commission, but without success.
Things didn’t get better in Japan. In fact, the company had to deal with a number of issues with the regulatory agencies. Apparently, the authorities in Japan claimed that the platform was operating without registration.
Malta: crypto-utopia
Malta positions itself as a crypto-friendly country, trying to attract more investors and companies. The Maltese government even launched the Malta Digital Innovation Authority in order to encourage cryptocurrency development. So it’s no wonder that in March 2018, Changpend Zhao announced that he would move the company there.
BNB – security or utility token?
The Binance coin (BNB) is an ERC20 token, issued during their own ICO, and that you can use for trading on the platform.
Recently, eToro published a report dealing with the question of whether BNB is a utility or security token. According to the report, it’s not easy to put the BNB in one (security or utility) category.
On one side, BNB is tied to Binance, and its valued depends on the crypto exchange. But, on the other side, BNB can be used as a payment method. For example, in December 2018, BitTorrent accepted BNB coins as a means of payment, which lead us to put the coin in the security category.
Binance trading and fake volume?
A recent study conducted by Bitwise showed that 95% of Bitcoin trading volume is fake and/or non-economic in nature. Also, the report pointed out only ten crypto exchanges that have actual volume, and Binance is one of them.
What options do you have for trading on Binance?
Binance supports a wide variety of coins, and they’re constantly adding new coins and tokens after their ICO. But that’s not the only reason why Binance is one of the most popular crypto trading platforms. Here are some other reasons for that:
- It supports over 120 different tokens and coins, and works with over 240 different trading pairs.
- The exchange has a great referral program: you will receive 50% of your referral’s trading fees as a commission.
- The platform doesn’t have minimum deposits or withdrawal requirements.
- Trading fees are 0.1%, and they are based on trading volume over a 30-day period.
Moreover, the CEO recently announced that a margin trading system will be available soon.
Binance Launchpad – IEO platform
In January 2018, Binance revealed that it will launch token fundraising events monthly through its Binance Launchpad platform. And we shouldn’t wait long for the first results. First of all,BitTorrent managed to raise $7.12 million in less than fiftteen minutes, and a month after that Fetch.Ai was even quicker: it raised $6 million in a ten seconds.
As promised, the platform continues with IEOs launching every month, and the most recent one was Matic Network.
Binance security breach
On May 7th, Changpeng Zhao announced on Twitter that the exchange has been hacked. As it turns out, hackers managed to steal 7,000 bitcoins from Binance’s hot wallet. Also, according to the Binance’s statement, hackers “were able to obtain a large number of user API keys, 2FA codes, and potentially other info.“
Luckily, no cold storage is harmed, and the exchange’s liquidity will pay for the losses.
Create your first Bincance account here
Conclusion
The recent Binance security breach is a major setback for the exchange. Still, Binance, as a fairly new exchange on the market, managed to get a lot on popularity and continues to bring new products to the crypto market. Moreover, today, Binance is the world’s largest crypto exchange by traded volume.
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