Zhao Changpeng (CZ)@CZ As the founder of Binance Exchange, his entrepreneurial journey is closely intertwined with Binance's rise, showcasing the leap of the cryptocurrency industry from the margins to the mainstream. The following is an analysis of his creation of Binance and his efforts to make it the world's largest cryptocurrency exchange.
One, Early Experiences and Technical Accumulation
Zhao Changpeng was born in 1977 in Lianyungang, Jiangsu, and later immigrated to Canada with his family. He studied computer science at McGill University and entered the fintech field after graduation, developing high-frequency trading systems for the Tokyo Stock Exchange and Bloomberg. In 2005, he founded Fuxin Information Technology Company in Shanghai, focusing on high-frequency trading technology, accumulating dual experience in finance and technology.
In 2013, Zhao Changpeng was introduced to Bitcoin through a poker friend and subsequently joined the blockchain wallet company http://Blockchain.info, serving as the Chief Technology Officer of OKCoin. This experience allowed him to deeply understand the pain points of the cryptocurrency market—trading efficiency and security issues—laying the foundation for the subsequent establishment of Binance.
Two, Founding Binance: Seizing the Industry Opportunity
Founding Background and Goals
In July 2017, Zhao Changpeng registered Binance in Hong Kong, with an initial team of fewer than 30 people. This was during a Bitcoin bull market (with prices soaring from $1,000 at the beginning of the year to nearly $20,000 by the end), leading to a surge in demand for trading platforms. Zhao Changpeng set a clear goal: "To build Binance into a world-class exchange" and focused on user experience and technological innovation.
Key Strategies for Rapid Rise
Global Layout: Binance supports multiple languages and currencies from the start, quickly attracting global users.
Low Fees and BNB Ecosystem: Launching the platform token#bnb (Binance Coin), users can enjoy discounts by paying fees with BNB, forming an ecological closed loop.
Technical Advantages: With experience from high-frequency trading systems, Binance achieves a high throughput of 1.4 million transactions per second, far exceeding competitors.
User and Trading Volume Explosion
In just six months, Binance's user base exceeded 6 million, and daily trading volume ranked first globally. By 2018, Binance had become the world's largest cryptocurrency exchange, and Zhao Changpeng appeared on the cover of Forbes with a net worth of $2 billion, becoming the first Chinese figure in the crypto industry to enter the global billionaire list.
Three, Responding to Challenges: Compliance and Legal Turbulence
Regulatory Pressure and Compliance Transformation
After 2017, countries strengthened their regulation of cryptocurrencies. Binance mitigated risks by relocating its headquarters to Malta, the Cayman Islands, and other 'regulatory-friendly' regions while introducing an Anti-Money Laundering (AML) system. However, the U.S. Department of Justice accused it of still having compliance loopholes, resulting in a $4.3 billion fine in 2023. Zhao Changpeng resigned as CEO and admitted to AML violations.
Leadership Adjustment and Strategic Continuation
After Zhao Changpeng's resignation, co-founder He Yi@Yi He (Binance Chief Marketing Officer) led the company's operations and increased the user base from 130 million to 200 million. Despite facing lawsuits and regulatory pressures, Binance's daily trading volume remained globally leading (averaging over $76 billion daily in 2024), with a valuation of $300 billion.
Four, Binance's Market Position and Industry Impact
Current Scale
Binance supports over 500 cryptocurrencies trading, covering a full range of services including spot, futures, and leverage, with users across more than 200 countries and regions, capturing about 70% of the global cryptocurrency trading volume.
Industry Benchmark Role
Innovative Products: Such as Binance Smart Chain (BSC), Launchpad (token issuance platform), etc., promoting the development of DeFi and Web3 ecosystems.
Market Education: Through Binance Academy, research reports, etc., popularizing blockchain knowledge and enhancing industry transparency.
Controversies and Reflections
The rise of Binance also exposes the contradictions in the crypto industry between compliance and innovation. Zhao Changpeng's personal experience (from billionaire to 4 months in prison) warns the industry: the wild growth must shift towards compliance development.
Conclusion: Zhao Changpeng, with his technical background, market sensitivity, and global vision, founded Binance during the cryptocurrency boom and quickly occupied the industry's high ground through efficient operation and ecological construction. Despite facing intense regulatory pressure, Binance has maintained its lead through strategic adjustments. Its development process is both a microcosm of the cryptocurrency industry and provides important references for future financial innovation and compliance balance.
