The number one exchange Binance was built by a person named Zhao Changpeng and he steered it to being the world’s largest digital-asset exchange in just 8 months. The net volume of Binance in the last 24 hours amounts to $1.762 billion. He has led Binance to a $200 million profit in its second quarter of existence and gained a personal fortune that he claims is worth as much as $2 billion.
The 41-year-old exchange kingpin is now under a threat that seeks to send him and his billion dollar worth exchange back down to earth. Since its inception, it has attracted 6 million users through its 1.4 million transactions-per-second capability.
The Founder Zhao Changpeng, known as CZ claims:
“No decentralized exchange in the world is capable of handling our volume and none are as secure as we are.”
An Initial Coin Offering [ICO] was issued back in July and since then, the Binance Coin [BNB] has soared from about 10 cents to $13 and is now priced at $12.42 with a market capital of $1.443 billion. Zhao Changpeng also owns the biggest stake in the coins. BNB, in the bearish market is currently trading at $12.47 with a hike of 15% this week.
Due to an official notice from Japan’s securities regulator which asked the firm to stop operating in the country without a license, Zhao had to abandon his plan to build a base in the country. Binance along with many other exchanges were warned by Hong Kong’s Securities and Futures Commission in recent months, which told the exchanges to refrain from trading cryptocurrencies that qualify as securities.
With a support for about 120 coins, Binance works with 100 plus wallets and 240 trading pairs.
“5000 applications have been received by us for coin listings and our team only welcomes projects that have strong credibility, user base, and liquidity.”
He also said:
“I’m convinced 100 percent that crypto is the future, I just know it will happen.”
David Shin, Singapore-based Asia Fintech Society’s president says:
“Binance is like a van selling coffee in front of an office building while the legitimate coffee shops which are on the street suffer. The point is it lacks regulation and transparency.”
Zhao, in an interview with Bloomberg, said:
“To evaluate the coins in the list, we take a venture capital-like approach which favours those coins that are backed by teams with a track record and real products. The coin issuers should also provide us with a legal opinion that the coins aren’t securities.”
Zhao has also kept the exchange away from the traditional system and all the regulatory requirements that come with it by engaging the exchange only with cryptocurrencies and not fiat currencies.
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