Why Binance Is The Number One Cryptocurrency Exchange, Exclusive Interview With Changpeng Zhao, Aka CZ
Binance has exceeded all expectations, including those of the CEO and founder Changpeng Zhao, or CZ as he is known, to reach the number one cryptocurrency exchange in just six months. Binance is arguably also the fastest ever Unicorn reaching double the valuation required (hitting $2billion) and is moreover profitable.
‘If you had asked me a month ago when we would hit the number one spot,’ says CZ from Tokyo where he had not stopped working all over the holidays, ‘I might have answered six to nine months. If you had asked me about unicorn status, I might have thought the same period. This growth has surprised even me.’
Binance may be an overnight success but CZ has certainly put in the time and there is very little left to chance in this booming exchange.
With three lines of business: trading, incubation labs and Binance’s ICO Launchpad, things are moving very quickly.
Two ICOs have already been rolled out on the Launchpad; GIFTO and Bread. The two ICOs raised $3million and $3.5million respectfully in a matter of minutes.
‘We are building a community of trust,’ says CZ. ‘Part of that is the release of ICO funds.’
In an exclusive interview with CCN, CZ revealed that the Binance Launchpad operates on trust. ‘Ironic,’ he admits in the era of the blockchain. ‘But we have an obligation to our traders and we also work hard with the ICOs.’
CZ revealed that his Launchpad does not release the monies raised straight away. 25% is delivered post ICO and the remaining 75% is released based on milestones agreed and reached.
‘Most ICOs do not need the full amount on day one,’ says CZ. ‘This way we can hold the ICO accountable for their work. It does not guarantee their eventual success but it does winnow out scams and bad practice.’
‘We are operating like a traditional VC in some regard, but with more control,’ he explains.
Choosing the ICO is also an interesting job and one that will see a slew of enquires to the Exchange this year.
CZ is pragmatic about what ICOs he will look at. ‘In both the cases of GIFTO and Bread they had an established user base and a product that worked.’