The global market has not been peaceful recently. First, Silvergate collapsed, then SVB began to be run, and then Signature Bank was also going to close. The banking industry has ushered in a new round of trust crisis. While the United States was busy rescuing the banking industry, Credit Suisse, far away in Switzerland, was also hit by a crisis. Many people believe that the problems in the banking industry are caused by the Federal Reserve's continuous interest rate hikes, but more people ignore the problems of the banks themselves and the risks brought by human nature.

Binance's secret to surviving the banking crisis

The liquidity crisis caused by banks using a large amount of user deposits to purchase low-risk government bonds, coupled with the interest rate hike policy, became the root cause of the problem. Insufficient deposit reserve ratio and risk control issues are the most direct causes of the problem. In the crypto industry, even the huge FTX will face bankruptcy after misappropriating user funds. On the contrary, as the leader of crypto exchanges, Binance has always adhered to the most basic bottom line, and has been able to survive smoothly even when faced with doubts and runs from some users, thus achieving its current industry status.

Binance is very strict in the custody of user assets, including a complete Merkle tree reserve proof, which is also the first in the industry to prove that user assets are fully redeemable, and B-Tokens pledge proof. In addition, Binance has also published the wallet addresses of major currencies, allowing the public to monitor the flow of funds at any time, which also enhances everyone's confidence. Currently, the Binance Reserve Proof (PoR) system has a total of 24 assets with a value of over US$63 billion.

In addition, Binance was the first to set up an investor protection fund, which allows it to calmly deal with emergencies and prevent users from suffering unnecessary losses. In addition, Binance has also actively boosted industry confidence during the industry cooling-off period, launched a $1 billion plan to support industry recovery, reduce the spread of the crisis brought by FTX, and maintain the healthy development of the industry. At the same time, Binance.us's acquisition of Voyager is also proceeding in an orderly manner with the permission of the judge.

The wealth effect brought by IEO

Binance's responsible attitude towards assets has also attracted everyone's attention to Binance IEO and Binance ecosystem. Launchpad is a way for Binance to launch new projects. Binance strictly screens potential start-up projects and allows users holding BNB to participate in Launchpad and obtain token quotas at low prices, thereby obtaining high returns when they are launched.

Binance's launchpad is the first exchange in the industry to launch this method. It attracts everyone to participate by giving benefits to users, and further empowers BNB and increases the value of BNB. After the great success of Binance Launchpad, many exchanges also began to imitate Binance and launched their own "Launchpad". However, whether in terms of project quality or participants' returns, Binance can bring satisfactory answers to users, which also makes Binance's Launchpad very popular every time. In terms of market popularity, project quality, number of participants and return rate, other exchanges are somewhat inferior to Binance, which also reflects users' trust in Binance from the side.

Recently, SpaceID, which will be listed on Binance's Launchpad for the first time in 2023, has become the focus of market discussion. On the one hand, Binance has strict review of projects, and the projects have good returns after they are launched. On the other hand, Binance also supports the projects, which, combined with BNB Chain, will form Binance's own encryption ecology. SpaceID is a decentralized ID and domain name registration project on BNB Chain. Users can register .bnb and .arb domain names, playing an important role in the BNB Chain ecology. So far, SpaceID has become the second largest project after ENS in terms of registration volume and registration scale, and its popularity has also been recognized by the market. SpaceID has also received support and incubation from Binance. The launch of Launchpad has also enabled Binance to demonstrate its strong strength in incubating projects.

In addition to SpaceID, other Launchpad projects such as C98, fan tokens PORTO/LAZIO/BAR, StepN and other projects have achieved good returns on Binance Launchpad.

Integration of BNB public chain ecosystem

Public chain is another major layout enabled by BNB. A new public chain ecosystem is taking shape. From BNB Beacon Chain to BNB Smart Chain, to the recently released white paper BNB Greenfield, we can see that BNB Chain is laying out a complete public chain network, and in this way achieving a leading layout of Web3 in the crypto industry.

For example, Greenfield, which has attracted much attention recently, is a newly launched distributed storage network of BNB Chain. By deploying distributed storage, it enables distributed storage of DApp data on the chain while ensuring the security of data on DApp, thereby leading the data to be truly decentralized, thereby getting rid of the theft of user data by centralized applications and realizing the vision of Web3 on the underlying infrastructure.

In addition, the DApp application ecosystem on BNB Chain is also developing in a very balanced manner. Top DeFi projects such as Uniswap are also deployed on BNB Chain. This is caused by the huge market demand on BNB Chain. At the same time, the entry of Uniswap has further increased the daily activity of BNB Chain.

In addition to the booming DeFi applications, many GameFi and Metaverse projects have chosen BNB Chain as their first choice, thanks to the low transaction fees that BNB Chain brings to users. Many Play to Earn projects have also gained a large number of fans and user groups, thereby realizing the excavation of game value.

The essence of Binance’s strength

Compared with other exchanges, Binance involves many directions. Although it is a bit complicated, if we look at the essence, the core purpose of most of Binance’s layout is actually to empower BNB, which is also the core reason why Binance can become so powerful.

In addition to regular repurchase and destruction, for example, Launchpad uses BNB, BNB Chain uses BNB as a handling fee, and many other projects have recognized BNB and use BNB to purchase NFT game characters and equipment, including the BNB Greenfield test network that is about to be released. It will become an application scenario for BNB. While gaining support, BNB also brings huge profits and dividends to the players who hold it, benefits users and continuously supports the value of BNB, giving BNB more ecological functions and roles. This is also the secret of Binance's continued leadership.