Binance has emerged as the world’s largest cryptocurrency exchange by daily trading volume. But how did it escape China, ride the Bitcoin bull market, generate $500 million in its first year, and aim to revolutionize finance? This deep dive unravels Binance’s explosive journey.
The Genesis: A High-Stakes Gamble
In August 2013, Changpeng Zhao (CZ), a Shanghai-based entrepreneur, sold his apartment to invest $1 million in Bitcoin at $600 per coin. His conviction paid off—today, that investment is worth $17 million.
"The world is crazier than you imagine, and I’m just part of it."
— He Yi, Binance Co-Founder
CZ’s risk-taking ethos laid the foundation for Binance. After stints at Blockchain.info and OKEx, he launched Bijie Tech, a cloud-based exchange software provider, which later pivoted to become Binance.
The ICO Catalyst
In June 2017, CZ seized the ICO boom to fund Binance. The Binance Coin (BNB) ICO raised $15 million in two weeks, but its launch was rocky—BNB’s value dropped 20%. The tide turned when marketing guru He Yi joined, skyrocketing BNB by 1,800% in weeks.
Key Milestones:
- July 2017: BNB token sale.
- August 2017: He Yi joins; BNB price soars.
- Regulatory Escape: Fearing Chinese crackdowns, Binance migrated its servers to AWS overnight and relocated its team to Japan.
Riding the Bitcoin Wave (2017–2018)
During Bitcoin’s bull run (from $3K to $20K), Binance’s user base exploded. Challenges included:
- KYC bottlenecks: 45,000 pending verifications at peak.
- Scalability: Servers strained under $10B daily trading volumes.
Despite chaos, Binance turned a $500M profit in Year 1.
Hack Attacks and Resilience
Binance faced two major security breaches:
- March 2018: Phishing attack; no funds lost due to quick action.
- May 2019: 7,000 BTC stolen ($40M). Binance paused withdrawals, reimbursed users via its SAFU fund, and upgraded security.
"What doesn’t kill us makes us stronger."
— CZ post-hack
Decentralizing the Future
Binance’s vision extends beyond centralized exchanges:
- Binance DEX: A decentralized exchange on its blockchain.
- DAO Ambitions: Plans to evolve into a user-governed, censorship-resistant platform.
Recent Expansions:
- Margin trading, loans, staking, and P2P services.
- Binance US: Launched in 2019 to comply with U.S. regulations.
FAQs
Q: How did Binance handle the 2019 hack?
A: By pausing withdrawals, reimbursing users, and overhauling security protocols.
Q: What’s Binance’s long-term goal?
A: To decentralize finance (DeFi) via DAOs and DEXs.
Q: Why relocate from China?
A: To avoid regulatory scrutiny and operate globally.
Conclusion: The Unstoppable Force
From a cramped Shanghai office to a borderless fintech titan, Binance’s story mirrors crypto’s disruptive potential. As CZ steps back, the exchange’s DAO-driven future could redefine global finance.
👉 Discover Binance’s latest innovations
For more insights, follow Decrypt’s crypto coverage.
### Keywords:
Binance, Cryptocurrency Exchange, CZ, BNB, Decentralized Finance, Bitcoin, ICO, Hack, DAO
---
**Note**: