How Binance, the cheapest platform on the market, is becoming a juggernaut in the financial world?
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What is Binance? This is the world 1st Market to exchange crypto-currencies such as Bitcoin or Ethereum and much more.
CoinMarketCap acquisition:
Binance has owned CoinMarketCap since April 2020 and acquired it for $ 400M. CoinMarketCap is and has always been a reference in monitoring different crypto-assets (price, market-cap, volume …). It is the 690th most visited site in the world. Even if nowadays CoinGecko is also a reference in this field, the acquisition of CoinMarketCap by Binance is a real demonstration of their place of influence in the crypto-ecosystem. Binance is directly linked to the biggest display of crypto prices in the world.
The BNB:
Binance firstly created their own token as known as BNB or “Binance Coin” to empower their platform. It can be considered as a classic share of the company but in reality it is way more than that. The more BNBs you own the more rewards you get. The main reward concerns trading fees and affiliate links pourcentage. Moreover buying BNBs seems like a good decision, the token follows the general growth of the market and of the first crypto-exchange of the planet: Binance. Besides, they burn a part of the tokens each quarter a year, what’s giving even more value to the coins.
Finally this token represents a for Binance a way to capture value and keep control on a part of the crypto-ecosystem
Profits:
Binance is becoming one of the most profitable companies in the world. Indeed, interactions on CEX (centralized exchange) are a the highest right now and trading-fees are a really good way for Binance to be profitable.
Considering them manipulating $25 Billions of assets a day, fees represent a large amount of money, here is a quick view on it:
Binance burns BNB tokens worth 20% of its profits every quarter. Since it burned $165.8 million worth of tokens in Q4 (2020), we can deduce that it made approximately $829 million in profit in Q4 (2020) alone.
Nowadays Binance is making multi-Billions $ a year in profits and this is insanely HUGE for a 3 years old company.
CZ
Changpeng Zhao as know as CZ is the founder and CEO of Binance. He is a very famous person in the ecosystem. He is a “bitcoin addict” since 2013 and even sold a House at a time to invest more into Bitcoin. After the launch of Binance, platform will take only three months to become the market leader. He would become a billionaire in a matter of months and made the cover of Forbes in February 2018 .He is also a very funny person as you can see on his Twitter.
CZ plays a huge role into the crypto-economy and built a significant fanbase through the years. He is sometimes considered as the Elon Musk of cryptocurrencies. He built an empire from nothing and developed the ecosystem like no other.
BSC
The Binance Smart Chain or BSC is one of the most significant projects of Binance. They simply created their own Blockchain allowing smart-contracts, low fees & fasts transactions and Inter-blockchain DeFi mechanisms that increase the interoperability of DeFi.
Long story short, this blockchain is a gem of technology. Moreover during an era of ETH 1.0 where fees are around 100$ what is unusable for most users the BSC resolves this by providing a low fees (20cts$) blockchain able to create other DEFI platforms like PancakeSwap for example.
The BSC, launched in September 2020, is the new weapon of Binance and it will shake up the competition.
Conclusion
In only three years Binance created a massive Empire in the middle of the cryptocurrency world and doesn’t seem to want to stop owning new kingdoms. They are constantly pushing the limits further and developing new tools and products for the users, and they shouldn’t fall so early.