Binance Transformation: More Than a Stock Exchange

    Доминация Binance
    Dominance of Binance

    Binance continues to hold a leading position among crypto exchanges and at the same time spares no money infrastructure and expansion of services, positioning its policy as customer-oriented. At the same time, each announcement of the new acquisition of Binance makes one wonder “why do they need it?”.

    Why is the exchange buying up various projects for its ecosystem, what are these projects and what can this “Godzilla” cryptocurrency market turn into?


    Growing like a yeast

    Рост Binance
    The growth of Binance

    Just 3 years ago, Binance appeared on the cryptocurrency market and the first 6 months this name did not stand out among dozens of exchanges, which during the hectic period of the heyday of ICO and Bitcoin rally grew by leaps and bounds. Nevertheless, the Binance model as a “small but fair exchange” proved successful, bringing more than 7 million traders to the site in just a year.

    Read the full article: Detailed review of the Binance

    guys from The Block study to identify the share of various exchanges from Bitwise Real 10 and track their development. The position of Binance on the modern market and the state of the ecosystem at the end of 2019 are clearly shown in the pictures below:

    Доля торгов на криптовалютных биржах по месяцам 2019-го
    Share of trading on cryptocurrency exchanges by months of 2019
    Развитие инфраструктуры ведущих бирж в 2019-м
    Development of the infrastructure of the leading exchanges in 2019
    Total, in the third quarter of last year alone, Binance presented 12 new services, which is more than any other top-level exchange.

    And in early March, Changpeng Zhao announced that this year Binance plans to make several major acquisitions, and 2020, according to him, will be the “year of adoption”:

    The story of Binance

    Strategic takeover with appetite

    Создание корпорации Binance
    Establishment of Binance Corporation

    In its “ results years »Binance boasts that they made 5 strategic acquisitions in 2019, compared to 2 in 2018:

    [19459008 ] Interestingly, under the above tweet, Zhao himself added that there were at least 9 purchases, but the rest were not publicly announced. Of course, every company has the right to trade secrets, but hiding half of the acquisitions makes one wonder whether Binance is as transparent as it wants to seem to users.

    Be that as it may, we will consider the exchange’s purchases starting in 2019 in more detail:

    On September 2, the site announced that it was buying JEX - a platform for spot trading and derivatives trading. JEX was needed by Binance to launch the futures promised by users. As a result, a whole sub-platform Binance JEX appeared, allowing you to trade bitcoin futures, and later options.

    On November 17, Zhao announced that the company was investing in Mars Finance - a Chinese crypto publication: