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Binance CEO Changpeng Zhao "CZ" reviews the highlights of the quarter and the course of the third anniversary

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Update time : 2021-05-29 14:56:23
I will take this opportunity to share some of my thoughts and achievements that Binance has achieved along the way. It coincides with the third anniversary of Binance, and I want to share with you the course of Binance over the past three years.

Binance CEO Changpeng Zhao "CZ" reviews quarterly highlights and illustrations of the third anniversary
The 12th quarterly destruction of BNB reflects our operations in the second quarter of 2020. During this period, we achieved the following milestones:

The Binance Contract Trading Platform continues to maintain its leading position as an encrypted asset contract trading platform, and its types of perpetual contracts have increased from 24 to 32. The platform has also launched a quarterly delivery contract, and two delivery contracts have already been launched.
We launched Binance Options products, and currently have BTC, ETH, and XRP products online.
We launched Binance leveraged tokens, which solved the major problems of existing leveraged tokens.
We continue to expand the fiat currency-encrypted asset channel. The Binance spot trading platform currently has 30 fiat currency-encrypted asset trading pairs, and the Binance C2C platform now supports 31 fiat currencies.
Before the end of the quarter, the Binance platform has supported the direct purchase of crypto assets through credit cards in more than 180 countries.
BUSD has become one of the world's five largest stablecoins, with an issue value of more than 1 billion U.S. dollars and a market value of up to 200 million U.S. dollars.
At the beginning of this quarter, we acquired the crypto asset information portal CoinMarketCap (CMC). Since then, we have begun to help the CMC team carry out a series of product iterations while maintaining its independent operating model.
At the end of the quarter, we acquired Swipe, an encrypted asset debit card platform. After that, we jointly launched the Binance Card. In the future, Binance users can use encrypted assets to spend all over the world with a simple swipe.
Two major investments marked our expansion into new markets and new areas. We invested in Tokocrypto, Indonesia's first regulated trading platform, which is powered by Binance Cloud. And through the merger of TravelbyBit and Travala, it has been involved in the online travel service industry of encrypted assets.
We promote the popularization of encrypted assets by establishing partnerships with industry leaders such as Brave browser, BitPay, and Bittorrent.
We launched our own mining pool-Binance Mining Pool, which provides the most favorable rates on the market. Binance mining pool has become one of the top 10 mining pools in the world, ranking 6th in the world.
Binance Charity’s "Crypto Asset Industry Fighting the New Crown Epidemic" program has raised nearly 4 million US dollars in donations and has distributed aid materials to more than 20 countries.
Binance CEO Changpeng Zhao "CZ" reviews the quarterly highlights and the third anniversary process illustration 2
Binance 3rd Anniversary

When celebrating the third anniversary of Binance, I feel very happy, not so much because of our achievements, as it is because of our team's hard work in the past three years to constantly overcome difficulties. This is behind the scenes that most people can't see. Our team has gone through a bloody battle before turning severe challenges into "lucky".

Value can be eaten raw strategy

Some people put forward the "culture can be eaten raw strategy", I agree with this point of view. But Binance’s culture is very diverse, and some key “strategic” decisions were not made by us or myself, at least not as people imagined. Many "strategies" demonstrate our position and attitude in dealing with challenges. We must make difficult choices based on our core values, deciding what is important and what should be given up. Sometimes this may include giving up 40% of the cash reserves and transferring to another city. Regardless of the external environment, we always adhere to the core values ​​of protecting users.

Next, let us briefly review the history of Binance as the quarters change.

ICO (initial coin offering)

Three years ago, we were lucky enough to raise $15 million through an ICO within two weeks. I recorded my feelings about the fundraising in the article "The ICO". Everyone on the team worked 22 hours a day, and the greeting between us became "Hey, go to sleep". The reply is usually "I am fine, I am about to solve this problem" and so on. In short, we are very hard.

This experience did not disappear, but left a trace in our lives. An eye infection of an important team member turned into a persistent eye disease. Today, he still needs to use a lot of eye drops. I also experienced some back and intervertebral disc problems myself and had to undergo surgery this year. We have many problems and challenges to overcome.

On the positive side, working side by side united our team closely, and this spirit of unity continues to this day. Binance has a highly cohesive team.

WFH (Work from Home)

About two years and 9 months ago, the Binance team started working from home, half of which was forced by the environment, and half was the result of active choice. Although it seemed to be a huge challenge at the time, we did not expect that the whole world will face such a challenge two and a half years later. Time to adapt to this office model. We are also honored to use our "Starbucks office", or organize a group to work in a coffee shop. This way of working has lasted for a long time. Many of our team members enjoy the "nomad" mode of working and traveling around the world very much.

Do the right thing, not the easy thing

Less than two months after Binance was established, the Chinese government announced in September 2017 that it would ban crypto-asset trading platforms. At the same time, the Chinese government requires all ICO projects to return their assets to investors. This means that if we want to continue our service, the team must be transferred. Secondly, the "94 ban" caused the price of most tokens to fall, many projects were unable to return the full amount of assets to investors, and many users were at a loss. At that time, Binance helped four projects conduct ICOs on its platform.

We did a calculation. If we want to make up the difference and return the investors' assets in full, we need to spend about 6 million U.S. dollars. Although we just raised 15 million US dollars two months ago, we are not yet profitable. In the first month of operation, we did not charge any fees, and the transaction volume was still very low. At that time, we were a small new exchange. Moreover, we also need funds to transfer the team to another country.

We unanimously decided to spend 6 million US dollars to ensure that users get a full refund. The team discussed it first without my knowledge. I was on a journey at the time. I remember that I received a call from the team on the high-speed rail. They explained the cause and effect to me, and I nodded in agreement. The entire conversation is less than 10 minutes. At all times, we follow our core principle: Put users first and do the right thing. The right thing is usually not an easy task.

So far, this is Binance’s largest single expenditure. If calculated as a percentage, this expenditure accounted for about 40% of our funds at the time. We choose to protect users and demonstrate our determination to provide quality services. I remember this decision brought us a lot of positive reports. Although we are at the same difficult time, there are still many users who flocked to us, which allowed us to obtain considerable profits one month later.

We have witnessed time and time again that in the long run, as long as we choose to do the right thing, difficult challenges can also be transformed into positive influence.

All-time high: Bitcoin, BNB and Binance

Three months later, on December 17, 2017, the price of Bitcoin hit an all-time high (ATH). Binance's daily trading volume has also reached a record high of 11 billion U.S. dollars. On the same day, Binance became the world's largest crypto asset trading platform in terms of transaction volume. Then the price of BNB rose to a high of about $24, and everything is gradually improving.

Bloomberg invited me to live TV at their Tokyo studio. This is the first time I ever appeared on TV. My travel equipment is very simple, so I didn't bring a formal outfit. I also wanted to show the Binance logo (label), so I wore a Binance sweater and went to Bloomberg TV. This was not intentional, and there was really no choice at the time. This is the first public appearance of the well-known Binance sweater in the circle today.

A few weeks later, "Forbes" magazine (Forbes) wrote an article about me, and I unexpectedly appeared on the cover of "Forbes" magazine (released on February 6, 2018). However, I am not even the richest person in the ranking of the richest in crypto assets. In January 2018, Forbes invited me to take photos in their Hong Kong studio. Similarly, I am wearing a Binance sweater. In hindsight, it might be the Binance sweater that made me appear on the cover of Forbes magazine. The cover of this magazine is almost all successful people in suits and leather shoes. The Forbes article helped Binance attract readers who are just beginning to understand crypto assets and interested in blockchain. Two weeks later, I attended a meeting hosted by Taiwanese Congressman Jason Hsu, which included many people from regulatory agencies. Mr. Xu prepared a cover of Forbes magazine for the participants. This is the best letter of introduction for myself and Binance. The participants showed a very respectful attitude and expressed their willingness to cooperate.

Regulatory environment in 2018

Things often don't go smoothly.

On a Wednesday at the end of March 2018, a famous Japanese newspaper published an article stating that Binance had received a warning from the local regulatory agency FSA. We searched all inboxes, whether it was a physical mailbox or an e-mail address, but could not find this warning, so we said that the news was creating panic (FUD). However, on Friday morning two days later, I received the email at 8 am Asian time. After I confirmed with the team that this is not a prank email, I posted a tweet about this message within an hour, and we always maintain a high degree of transparency with users.

Thanks to keeping the information highly transparent, Bloomberg conducted another interview with me. In that interview, I mentioned that we have plans to move to Malta. I visited Malta in January and February. Bloomberg released the content of the interview at noon Asian time. At 4 o'clock in the afternoon Asian time (8 o'clock in the morning in Europe), the Prime Minister of Malta, after waking up, probably saw an article from Bloomberg. He tweeted "Welcome to Malta @ Binance...". I believe this is the first state prime minister to openly welcome a blockchain company, at least the first to publish a message on Twitter. Everything is a matter of course, without any previous omens or plans.

Looking back, just two years ago, the regulation of the blockchain industry in many countries was not clear enough, or even negative. Today, the regulatory environment has become very positive. Central banks are racing to issue central bank digital currency (CBDC). In the past two years, many things can be changed. Knowing that we have contributed to this positive change, even a little bit, makes us even more eager to see us create new changes together in the future.

"Winter" travel around the world

In view of the above situation and benefiting from our constant adherence to the principle of transparency, many people have begun to help. I have only met friends in the circle a few times and introduced us to Bermuda. We flew to Bermuda and met with Prime Minister David Burt in April 2018. They were warm and hospitable and greeted us at the airport with the courtesy of the prime minister. The driver showed up wearing a suit jacket, shorts and high socks, which I thought was very interesting. I quickly discovered that this is Bermuda's formal wear. In order to respect the local culture, I went to buy a set of Bermuda formal wear with the Prime Minister’s assistant, and appeared in shorts and high socks at the ceremony the next day. The people present praised my clothing for being very localized. But surprisingly, everyone else is wearing trousers. That photo went viral on social media, and I wish I had more photos in this suit.

Binance CEO Changpeng Zhao "CZ" reviews the quarterly highlights and the third anniversary process illustration 4
If you pay attention to the places I mentioned, you will probably have a better understanding of the "nomad" I mentioned earlier. We began to roam the world to promote the popularization of encrypted assets.

Another friend introduced us to the heads of state in Africa, so we flew to Togo, Ethiopia, Uganda, Kenya and many other countries that wished to keep a secret for the time being.

You might say, aren't we going to discuss the topic of "winter"? Yes, what I want to say is the winter of the crypto asset industry. In this "winter", we have spent a lot of time promoting crypto-asset education globally and promoting friendly regulatory policies in the crypto-asset industry. We have no hesitation in moving forward.

Lightning growth

In the second half of 2018, the “winter” of the crypto asset industry continued, and the price of Bitcoin fell by 85% from the highest point in history. When many people say "Bitcoin is dead", I have been asking the team to improve platform performance. Can we handle 10 times or even 100 times the transaction volume? I am not worried about the spread of the sentiment of "Bitcoin is dead". I am worried that when the price of Bitcoin again increases by 10 times, our platform will not be able to load the steep increase in transaction volume. In terms of systems, we have an industry-leading matchmaking engine, but if Bitcoin skyrocketed in 2018, some auxiliary systems will be difficult to keep up. In addition, our customer service team is still small. We have been expanding the customer service team, but while raising recruitment standards, increasing the number of recruitments is bound to be a slow process.

The so-called "winter" in the crypto asset industry in 2018 has given us a chance to breathe and catch up. Given that we have rapidly developed into the world's largest crypto asset trading platform in less than 6 months, our system has been under tremendous pressure. We need time to breathe, make up for the technical shortcomings, and upgrade our systems, which usually takes a long time. We started the entire system rewrite project in 2018, which was completed two years later. We also launched important projects like Binance Chain, which took more than 10 months.

2019 year

Many of the projects we started in 2018 were officially launched in 2019.

At the beginning of 2019, when the price of Bitcoin was at the bottom of its history, the Binance Asset Issuing Platform (Launchpad) issued BitTorrent. To be honest, we did not expect IEO (Exchange Initial Issuance) to have a profound impact on the entire industry. We just think that blockchain financing is a killer application, and we will continue to provide global blockchain projects with opportunities to issue on this platform.

Also in 2019, we launched the highly anticipated Binance Chain/DEX (decentralized trading platform), leveraged trading and contract trading. We have witnessed the rapid growth of all these important projects.

Those who can't kill you make you stronger

We lost $42 million in a security incident in May 2019. Binance fully assumed the loss through the SAFU fund, and no user suffered any loss due to the incident. This was a painful experience, but looking back on the past, it can be said whether it was extremely peaceful. This experience has prompted us to redouble our efforts in the security transformation plan, and the security of our system has been qualitatively improved.

After a week of hard work, we resumed deposits and withdrawals. To our surprise, we saw users deposit more than withdrawals. very much