TL;DR

Binance has evolved from a small startup to a leading cryptocurrency exchange, significantly impacting the crypto industry. Its journey includes innovative projects and notable controversies.

Key Takeaways

Binance launched in July 2017 and quickly grew to prominence.
The exchange introduced a stablecoin project and partnered with Simplex for credit card purchases.
Binance Smart Chain was launched to enhance its position in DeFi.
The platform faced major controversies, including a significant hack and investigations by the IRS.
Despite challenges, Binance is poised for future growth.

Binance’s Launch (July 2017)

In July 2017, Binance began operations with its original headquarters in China. Founded by Changpeng Zhao and He Yi, Zhao serves as the CEO. Before Binance, Zhao gained extensive knowledge about cryptocurrencies while working at OkCoin. In September 2017, Binance relocated its headquarters to Malta due to the Chinese government's negative stance on crypto trading. Currently, the exchange is based in the Cayman Islands, with a secondary headquarters in the United States known as Binance US.

The Prime Era of Binance (2018-19)

Raising Funds for a Stablecoin Project (August 2018)

In 2018, Binance allocated $32 million for the development of a stablecoin called Terra, backed by TMO, a major South Korean e-commerce platform, to promote cryptocurrency use among customers.

Partnership with Simplex (January 2019)

In early 2019, Binance partnered with Simplex, an Israel-based payment processing company, allowing users to purchase cryptocurrencies directly using credit cards on the Binance website.

Revolutionary Innovations by Binance

Announcing Binance Jersey (2019)

To expand its reach to Europe, Binance introduced Binance Jersey, facilitating cryptocurrency trading for Europeans using British pounds and euros.

Launch of Binance Smart Chain (September 2020)

Binance Smart Chain (BSC) was launched to strengthen Binance’s position in Decentralized Finance (DeFi). BSC was marketed as an alternative to Ethereum due to its superior speed and reliability.

Significant Controversies Surrounding Binance

Experiencing Large-Scale Hacking (May 2019)

In May 2019, hackers stole BNB tokens worth $570 million from Binance, marking a significant hacking incident. Binance compensated its users within 2-3 months using secret funds.

IRS Investigation Alleging Money Laundering (May 2021)

As Binance's trading volume surged, the IRS initiated an investigation into allegations of money laundering and unregistered transactions, which continues to this day.

Backlash Against Binance for Not Banning Russian Users Amid Russia-Ukraine War (March 2022)

During the Russia-Ukraine war, Binance faced backlash for not freezing the accounts of Russian users, leading to widespread criticism.

Feud With FTX (2022-23)

Binance's strategic decision to sell its holdings in FTX contributed to the latter's collapse in May 2023, raising questions about the timing and motivations behind the move.

The Future of Binance

With FTX's downfall, Binance has surpassed its biggest competitor. Analysts predict that Binance will reach new all-time highs, with a 1.98% increase in BNB value forecasted for July. The future remains uncertain as Binance navigates ongoing controversies.