A year ago no one had heard of Binance. This is because the exchange of crypto-currencies, which is now the 339th most popular site in the world, is working even less than six months.
Binance started through the ICO in July 2017, which helped raise about $ 15 million, and the early user base was characterized by the geographical concentration of users in China.
Accordingly, the exchange was heavily influenced by the September China ban on the exchange of crypto-currencies and the ICO, which contained an order to close internal crypto-exchanges and forced Binance to immediately prohibit a significant number of its users from trading on the platform.
Despite this failure – and fierce competition with other exchanges that have worked much longer – Binance has managed to become the world’s largest crypto exchange, which does not support trading pairs with currency.
Last day, Binance processed the volume of trading at $ 4.3 billion, and CEO Zhao Changpeng told Bloomberg that the stock exchange registers “a couple million new users every week”, which forces the company to limit the number of new registrations.
On January 10, Binance opened the registration for new users within an hour, and during this short period, more than 240,000 users registered on the platform.
We have a guy who just keeps an eye on the server all day long. Every day he says: “Well, we have 200 thousand more”, but we just ask more.
“We did not expect such growth, to be honest,” Zhao continued, adding that although the average client of the exchange is a managed 25-30 with “deep pockets”, the exchange sees more interest from institutional investors.
Causes of rapid growth
Several factors seem to have contributed to the rapid rise of Binance.
The company has an aggressive referral program, in which a 20 percent commission is paid. One platform user has such an extensive network that he has already received more than 76 bitcoins through this program.
The exchange also used funds raised at the ICO to launch several high-profile promotions. In a recent action, one lucky guy received the Lamborghini Huracan RWD Coupe in 2018.
However, perhaps the strongest driver of demand is the comprehensive support of altcoins created with the help of forks of the blockchain of bitcoin. While most exchanges limited Bitcoin Cash support – the most important of these forks – Binance supported not only this cryptocurrency but also the lesser-known Bitcoin Gold and Bitcoin Diamond.
Despite the phenomenal growth of the crypto-exchange, Zhao said that the company does not intend to stop there. Further on the agenda is getting a license from the Japan-friendly financial services agency in Japan and moving the exchange to Tokyo, positioning it in the center of one of the most feverish markets of the world’s cryptocurrency trading.