2021 was a great year for cryptocurrency. The year of the Ox saw a bullish increase in the use cases of crypto, NFTs, the Metaverse, along with wider adoption of crypto around the world. Binance, the biggest cryptocurrency exchange in the world too had a good year globally.
The platform was able to successfully receive in-principal approval as a crypto-asset service provider in the Kingdom of Bahrain and also sign the Memorandum of Understanding with the Dubai World Trade Centre Authority. Binance also launched a 100 million EUR crypto and blockchain initiative to support the development of the French and European blockchain and cryptocurrency ecosystem called Objective Moon. Needless to say, 2021 was an eventful year for the exchange.
Wrapping up the year, CZ, the CEO of Binance discussed some of the pressing questions submitted by users about the platform and the crypto space in general.
Here are some of the key highlights from the video:
Addressing the issue of Ponzi schemes and he elaborated on the nascent stage of the industry and the need for people to do their own research while investing in projects and coins. He advised people to only invest in coins they truly believe in.
Rigorous screening for token listing
Binance lists an estimated 600 to 700 coins out of 6 million coins, that is on average 1 in 10,000 coins. CZ explained that only 0.01% of the total coins in the space gets listed on Binance, which is a very small number. The Binance team goes through a screening process and looks at multiple metrics to judge if a project is solid and can be listed on the platform. This rigorous process ensures that the user numbers are not engineered.
Bringing together crypto and traditional finance
DeFi or Decentralized Finance is one of the major areas that has gained a lot of attention in the past year. On the topic of centralized exchanges and DeFi being deemed as the future of the crypto space, CZ talked about the need for integrating the crypto space with the traditional financial industry so as to ensure the flow of money in the ecosystem.
Accelerating mass adoption through regulations
One of the areas where Binance has made significant progress in the past year has been pertaining to the establishment of crypto regulations around the world. Crypto regulatory frameworks have emerged in various jurisdictions all over the world indicating recognition and the underlying potential of blockchain and cryptocurrency.
Although Binance bore the brunt of regulations and scrutiny in many parts of the world, it recognized the need for these regulations. Regulations are important for accelerating the process of mass adoption and giving people a smooth trading experience. For the crypto industry to grow, the gap between crypto and fiat needs to be bridged. This can be achieved only with the integration of traditional financial systems, banks, payment services, and on and off fiat ramps. Licenses are the only way this would be possible.
KYCs are an important part of centralized platforms and while smaller platforms may not have mandatory KYC, they are riskier and less compliant. Although DeFi platforms do not require KYC, they also do not offer customer support to their users.
Share of voice and the community
Talking about the Binance community and the feedback they receive from their users, CZ mentioned that the platform has about 90 million users worldwide and they receive constant feedback that they try to get to as soon as possible. He advised users to communicate with them across multiple channels including Twitter and Telegram so that any important feedback does not go unnoticed.
Binance pays close attention to its user numbers including transaction volumes, daily active addresses, number of people on Twitter and Telegram. They call it the “share of voice”. This helps them in developing their platform better.
In 2021, Binance executed keystone campaigns and projects that helped in the expansion of the blockchain ecosystem while also moving forward in the crypto industry. The unpredictability of the space is what makes it attractive and Binance is keenly looking forward to more innovations and developments in the next year.
With great power comes great responsibility, and being an industry leader Binance recognizes this well. The platform commits to its mission of maintaining collaborative partnerships with regulators and government agencies worldwide while creating a sustainable and fair playing field for everyone.
For more information on Binance, please check out their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.