It has been more than a decade since the emergence of the revolutionary digital currency – Bitcoin on the back of blockchain technology. But, what no one paid attention to when Satoshi Nakamoto created Bitcoin is that it will not only disrupt the financial sector but all sectors as we know them. Now, 13 years later, the market potential is said to be on par – if not more – with the internet.
This potential has been emphasized in many technologists, regulators, and companies; Everyone is trying to build on emerging technology or provide services related to it. One proper look at the cryptocurrency markets and one can easily realize that competition is by no means child’s play.
However, amid all this, Binance – an infrastructure provider of cryptocurrency and blockchain technology – has shed light on the competition’s leadership.
Since its launch in 2017, the company – which was first launched as an exchange service provider – has undoubtedly become one of the fastest growing crypto companies in the space, with its founder Rank As one of the richest men in the world and the richest man in the crypto world.
However, it should be noted that the company did not have an overnight success; She achieved this by carefully laying out her vision and working towards achieving it, step by step. CEO and Founder of Binance – Changpeng Zhao [aka CZ] Recently coined Below are some of the reasons for the success, highlighting an aspect that has been unknown even to those in the crypto space for some time now.
In the case of Binance, contrary to popular belief, it was not one of the factors that led to the company’s success but rather several factors that led to the perceived success. Zhao said,
“For something to work, you have to do 1,000 things relatively well, plus a lot of luck. For something to fail, you only need to do one thing badly, even after you have done the other 1,000 things relatively well.. “
The founder also noted that 1,000 items can be categorized into three main groups: Users, Services, and Products; Collections that are a unique selling point for Binance.
behind the curtains
Looking back, the platform was launched in July 2017 after raising around $15 million in ICO [ICO] in Shanghai. Soon after its launch, the exchange faced its first major challenge – the Chinese government imposed restrictions on cryptocurrency exchanges and ICOs. To make matters worse, the government decreed that all projects that raised money through ICOs must be returned to users at their original price. In this regard, Binance turned out to be lucky that the exchange token – BNB – was 600% higher than the ICO price.
While Binance has been lucky with this, the same cannot be said for other projects. The founder noted that there were four projects launched on the platform that performed below the initial coin offering price. However, the team viewed the matter with an optimistic lens and decided to step in by plugging the gap in these projects, making it the exchange’s first big step in putting its clients ahead of everything.
The exchange put in $6 million from its cash reserves to fill the gap of the four ICOs in order to return the original invested amount to its clients. The founder noted that it was the first and perhaps the last time an exchange had done something like this. However, the attitude of the users first in this matter created a positive feeling towards the exchange, thus attracting more customers. Zhao said,
“To this day, this is the single largest spend in terms of percentage for Binance. It was more than 40% of our total cash reserves. We were an eight-week-old start-up. Not profitable, burn money fast, hire, and grow. It was expensive, but we stick to the spirit of protecting users. “
Staying true to her community
It should be noted that the popularity and preference of the stock exchange did not rise with one such move, but rather with several. Another incident centered on the exchange that put its users first in the matter of the NEO gas token, Czechoslovakia reported. About the situation, the CEO said,
“Through our balance adjustments, we have identified additional GAS tokens in our portfolio. We were worried. Was there an error somewhere? After some thorough checking, we learned that if you hold NEO in your wallet, it generates gas, which is another token that has value as well.. “
After learning this, the exchange decided to give gas tokens to NEO holders, a move that no other company had done at the time. This fueled the exchange’s growth as most NEO users transferred their funds to Binance.
Moreover, the exchange was the first to provide support in the exchange of airdrops and forks. This created a hassle-free situation where the user was not required to withdraw funds and deposit to the wallet during airdrops and forks, and after completion, deposit back into the exchange. Binance captured this share of users’ efforts by deciding to deal with airdrops and forks, where funds will be deposited into users’ accounts without even lifting a finger.
Notably, this is not the last time the platform has put its users first. The platform has done many things with users at the epicenter, and it continues to do so. According to Zhao,
“And the list goes on and on. But you got the point. Protecting users costs time and money, but we believe this is the right thing to do and is the best way to attract and retain users. We encourage other exchanges to do so too. “
Setting standards from the start:
Now, any company that works in the service sector or otherwise knows that customer service should always be the primary focus because it is the company. In terms of this, no other company in the cryptocurrency space has understood it better than Binance.
The world’s leading exchange has topped the plate with customer service by providing not only quick response, but also appropriate solutions. The exchange was the first to set up a process in which a customer did not need to wait days or sometimes even months for a response or help on a particular issue – a common occurrence at the time.
The platform has set a record response time of a maximum of 24 hours and at least one hour, a move that has been greatly appreciated by the Binance community. Now, this time has been reduced to a few minutes, and the exchange even supports a live chat system.
Binance also has customer support in 12 languages - with the platform set to add to that list – bearing in mind that their community is not country-specific, but a global one.
Moreover, the exchange has a history of helping its users in matters not related to the exchange. This includes currency recovery assistance and even tracking of money and protection Encryption in cases of hacking or fraud.
With all that said, the exchange was sure to have been successful by all means by keeping the first two sets in check. But it wouldn’t be where it is now had it not been for its products. The exchange outperformed its competition by offering a range of products that were not available at the time, and in particular, it has continued to do so.
According to Zhao, four main factors within its product range have driven the platform’s success: speed, coins, fees, and universality. Binance’s matching time was the best in the industry, and its API was the fastest and most stable on the market.
The exchange was also the first to be more than just a Bitcoin exchange. Binance was one of the very few exchanges to offer support for other cryptocurrencies in the market, a factor missing from the majority of exchanges at the time. Binance made a move in this direction after noticing that there was a huge demand for a platform that supports other cryptocurrencies. Thus, satisfying the needs of its customers by creating a liquid market for those coins.
Moreover, the exchange has one of the best fee panels in the entire market. In the period of its creation, the exchange had fees 10 times lower than other exchanges. Now, four years from now, the exchange platform still has the lowest fees in the world, with the platform aiming to reduce them even more in the future.
Internationally, Binance noted that the two largest exchanges at the time – Poloniex and Bittrex – mainly catered to users in the US, thus leaving behind clients who came from other parts of the world.
According to Zhao, these exchanges were only providing user interfaces in English, excluding other languages. Binance made a move to bridge this gap by launching its interface in nine languages within its first month of launch, totaling 31 languages today.
Changpeng Zhao concluded,
“In short, there is no secret sauce to building a successful exchange. You have to stick to your values, build a good product and serve your users. To this end, I would like to thank all the Binance team, including the Binance Angels, for their hard work, dedication and contributions.. “
Disclaimer: This is a paid post and should not be considered news/advice