This week, Changpeng Zhao (CZ) stepped down as CEO of Binance, passing the baton to new CEO Richard Teng, once again placing Binance at the forefront of the industry. Following this seismic industry announcement, "Ginger Lao Qin," COO of Web3.0 accelerator Starbase, published an in-depth analysis tracing Binance’s history and exploring its future trajectory.
Introduction
Binance has become a company both admired and feared in the crypto industry.
At just over six years old, this company has leveraged global expansion, market cycles, decisive strategies, and pragmatic vision under CZ’s leadership to become one of the most dominant forces in crypto history.
As of December 2022, Binance boasts 120 million global users and controls over 70% of the crypto trading market share.
The 2022 market crash, intensified by CZ’s role in the FTX collapse, left the industry reeling. Today, Binance stands unchallenged—jokingly referred to as:
"There are two types of exchanges: Binance and non-Binance."
However, Binance is no longer just an exchange.
This article examines Binance’s key milestones, exploring how it built an empire amid crypto’s volatile cycles.
Binance’s Risky Beginnings and Global Footprint
Early Challenges and Pivotal Moments
2017–2018:
- July 2017: Raised $15M via ICO.
- August 2017: Relocated servers overseas ahead of China’s ICO ban.
- September 2017: Compensated users $6M after the ban disrupted ongoing ICOs.
- January 2018: Surpassed 5M users, hitting $10B daily trading volume.
Critical Turning Points:
- BNB’s Crash: Post-ICO, BNB fell 33%, fueling skepticism until marketing expert He Yi joined, stabilizing confidence.
- Regulatory Shifts: After Japan’s crackdown post-Coincheck hack, Binance moved to Malta, embracing global compliance.
By 2018, Binance topped exchange rankings—a rise built on agility, luck, and relentless execution.
Building the Moat: Binance’s Business Blueprint
Three Core Strategies:
- Traffic Growth: Listings, BSC ecosystem projects, media, social platforms.
- Transaction Scenarios: CEX/DEX, NFTs, derivatives, staking, payments.
- Branding: Binance Labs, BSC fund, Binance Research.
Expansion Highlights:
- 2020: Launched BSC during DeFi Summer, attracting Ethereum spillover.
- 2021: NFT and GameFi boom via IGOs; BSC daily transactions 7x Ethereum’s.
- 2022: FTX collapse cemented dominance; $4.3B DOJ settlement pivoted to compliance.
👉 How Binance Outmaneuvered FTX
Future Predictions
Potential Risks:
- Leadership Gaps: New CEO Richard Teng’s ability to fill CZ’s shoes.
- Talent Drain: Balancing Web3 innovation with traditional expertise.
Growth Sectors:
- AI/Storage: Crypto’s next infrastructure wave.
- Web2-Onboarding: SocialFi, GameFi, and mainstream adoption tools.
Conclusion
Binance’s rise reflects perfect timing, ruthless execution, and adaptive strategy. As crypto matures, replicating its scale will be near-impossible.
The question now: Can Binance evolve beyond compliance woes to lead the next era?
FAQs
Q: What caused FTX’s collapse?
A: Liquidity crises triggered by Coindesk’s Alameda report and CZ’s public sell-off of FTT.
Q: Will Binance remain dominant?
A: Yes, but regulatory hurdles and competition from decentralized platforms pose risks.
Q: What’s next for BNB?
A: Continued utility across Binance’s ecosystem, though growth depends on BSC’s relevance.
👉 Explore Binance’s Latest Moves
Author: Ginger Lao Qin | Twitter: @ASuperGinger
References: Binance announcements, CoinDesk, BlockTempo