Born in the family of educators, Chanpeng Zhao has emerged as a big name in the cryptocurrency world with his company Binance (short name for Binary Finance). In just 6 months, Binance transcended the success of its forerunner Coinbase. This story has inspired many to rethink about the concept of exponential growth via internet of things. Still there are a few things about CZ and Binance that are not well known.
1. Zhao’s first attempt in establishing his own company
Zhao started working first building a system for matching trade orders on Tokyo Stock Exchange and then in New York, at Bloomberg’s trade book where he developed software for future trading. But somewhat he had grown impatient despite his considerably double-quick career trajectory. This young programming mastermind was in search of a new challenge and so he found Fusion Systems- his first own company. His company developed a number of speedy high-frequency trading systems that became popular with brokers.
2. How Zhao got introduced to Bitcoin
CZ got introduced to Bitcoin in 2013 though his friend and poker partner Ron Cap, who was the Managing Director of Lightspeed venture partners then, during investing in BTC China. Zhao immediately seized Satoshi Nakamot’s Bitcoin whitepaper and researched on Bitcoin though conferences and Bitcoin Talk Forum postings.
3. Rise of First ‘pure cryptocurrency exchange’
ICO (initial coin offering) helped binance on the order of 10 to 200x. Raising money through ICO was more than 100 times easier than going through traditional venture capital (VC) rounds. This gave them an initial user base and concluded raising $15 million. About 200 million BNB tokens were sold during ICO.
4. What CZ accredited to for his success.
Chanpeng accredits most of his success with being “country-agnostic” and team-work. Binance can be congenial to people of different languages by adopting Google Translate and restraining the word use in site. More and more investors were empowered worldwide to find value in this platform. Moreover, according to CZ, it’s 20 years (not 6 months) and teamwork, not just him in making of Binance.
5. What Industry Insiders think of Binance’s success
According to industry insiders, Zhao’s success is 30% personal ability and 70% good luck. Ironically, the good luck came with mainland authority’s sudden abolition of cryptocurrency trading platforms which put a danger to harm the operation of 2-month old Binance. Leading players like Huobi, OKcoin and Bitcoin China shut down their operations at official directives. But this Canadian Chinese shifted his operations overseas. Thus if Chinese authorities didn’t ban cryptocurrency trading, Binance might have remained a low-tier player in China.
6. Simplicity of Changpeng Zhao
Changpeng is older than most of his peers in this industry but in terms of portraying his success, he is a bit different from others. He doesn’t own a car or a house, has no interest in status symbols and is mostly seen wearing Binance branded t-shirts and hoodies.
7. 3 Benefits of BNB token
a) If you have a BNB token balance in Binance, when you trade, instead of paying a trading fee for whatever you trade, they get a commission fee from your Binance coin and you get a 50% discount at market value. The discount will get lower every year over a five years period. So, the next year the discount will be 25%.
b) every quarter they assure the customers to have used 20% of their profit to reclaim the coins at market value and demolish them up. They will shatter up to 1 hundred million Binance coins, a half of all available coins. Financially, that works as a dividend.
c) When they do the decentralised exchange, the BNB coin will be used as ‘gas’ or for paying fees on that blockchain.
8. Stumbling block in Binance empire
Binance lacks regulations and transparency. It’s promotion tactics, like Lamborghini giveaway and a commission-sharing referral program may turn Binance users into unlicensed securities brokers according to the market researchers. Moreover, the users need only an email address to open Binance trading accounts which is in a way inhibiting everything from money laundering to money manipulation.
9. Binance hacked!
Early this March 2018, several users reported that their altcoin holdings were liquidated unexpectedly and without any approval. Binance reassured customers that their money was still in their accounts and denied being attacked. A centralised (binance) as well as a decentralised exchange (DEX) development is still in progress.
10. Isolation of Binance
Binance offices and servers were always kept secret. This made it difficult to determine which country has jurisdiction over Binance. Even the employees were made not to disclose their affiliation with the exchange on social media.CZ also keeps on shifting from Singapore to Taiwan and Hong Kong frequently and never stays at a place for too long.
11. Insecurities of CZ
Since the Japanese authorities are getting tougher after the loss of about $500 million of assets to hackers by Coincheck Inc. ,a Tokyo based trading platform, Binance has also been prohibited from servicing Japanese users. It seems as Zhao has no chance of securing a licence in the country. Even Korean officials have degraded their know-your-customer regulations for cryptocurrencies and has made it more difficult for Binance to offer its services.
12. Mixture of 2 cultures has shaped Zhao and Binance
Binance inherits a lot of its Canadian Chinese founder’s personality. Chinese people work really hard. If you determine what kind of business relationships you have you can call the vendor at any time of the day, any day of the week, they will answer – and that’s fully welcomed in Chinese culture. The Binance team retains that.
On the Canadian perspective, Canada is an immigrant country, with all different races and is very internationally friendly. So that’s why
Binance team is truly international.
13. Binance in huge demand
In January 2018, the demand of Binance was so lofty, that there was only a 2 hour daily window when new users could register for an account. But still about 3% of their matching engine was only used on their highest performance day. Amongst other things, Binance gives very quick responses to its traders and that’s one of the things people love about it.
14. CZ doesn’t believe in being no.1 all the time
CZ’s rule to success is to try not to be no.1 all the time because being no.1 creates problems sometimes as the regulators always intent to talk to the no.1 guy. He believes that just always applauding Binance will make people bored of it and the negative news always helps in creating controversies, contention which, to a lot of observers, are more engaging stories.
15. Binance’s new home in Malta
Binance has recently set up a new base in Malta and set up a bank account. Malta has already become a blockchain island. A few dozen of companies have already established there. Binance chain is going to set up a decentralised exchange, a fiat-to-crypto exchange in Malta, Uganda and in Asia as well.
The success of this crypto trading platform proves to be a base that signifies establishment of affluence and countless on and off probabilities for any cryptocurrency related firm.