Binance was founded and run by the one of the great minds in the crypto space, Changpeng Zhao aka CZ. CZ was originally a coder who built high-frequency trading systems on Wall Street. He eventually moved into the crypto space working for crypto wallet/block explorer service Blockchain.info and serving as CTO for the crypto project OKCoin.
But then CZ lauched Binance in the 2017 and in nine months, Binance became the world's largest cryptocurrency exchange by trading volume making CZ a billionaire in the process. The rest is kind of history, but Binance continues to make history and make money moves.
In July 2019, Binance created a new entity in Singapore with Vertex Ventures. In Nov. 2019, they acquired WazirX, India’s largest cryptocurrency exchange. Recently, they made it possible for the people in Thailand to trade and invest in cryptos.
Why the emphasis to expand in Asia? Southeast Asia is the cryptocurrency capital of the world. Most of the bitcoin trading volume and cryptocurrency demand comes from this region. South Koreans spend billions of dollars each year on digital goods like avatars and digital gifts.
South Koreans spend billions of dollars each year on digital goods like avatars and digital gifts. Combined with their love for gambling and speculation, along with their love for digital goods, buying cryptocurrencies instantly became a part of the culture.
Binance just announced its 10th successful quarterly burn in a blog today, and with it, a total of 2.216 million BNB tokens worth $38.8 million were burnt from October to December 2019.
When you think about it, burning tokens in crypto space serves the same purpose of companies on the equity markets buying back their shares…it’s all about the perception of supply and demand and how we value that supply and demand of shares/tokens. But in the crypto space, unlike the equity markets, when a crypto company buys back their token to burn, that token disappears forever.
The main reason for burning a cryptocurrency is to increase the value of the other tokens that are in circulation. Many cryptocurrencies have a finite total number that can exist and therefore, assuming the demand for the token remains the same, the value should theoretically go up if there are less in circulation.
But even if Binance didn't have any token burns, their token price would still go up over time because they continue to make history and innovate. So where is price headed next, the chart suggests, price is heading to the weekly supply at $23.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
BNB is one of the great projects in the crypto space, but I just haven't invested in it yet.
Maybe one day I'll start to accumulate some BNB, but didn't realize the history of CZ so thanks for writing this!
My pleasure, I was waiting for $10, but don't think BNB will see that day.
Any investor who neglects to buy BNB now is going to KICK him/herself in the future!
I have always thought of Binance as a big player in the crypto space, but this article solidifies my opinion. Their recent activities have certainly helped Hive and combined with the activities of Huobi exchange Hives future looks bright.
I am also following the binance smart chain and it’s compatibility with the Ethereum blockchain and stated desire not to compete with Ethereum blockchain represent I think brilliant technological and marketing moves. Your right, Binance just keeps making great moves and bringing the technology.