Just a few days ago, Binance celebrated its third anniversary in style, organizing an online event known as “Off The Charts”. In which several of the main figures of the crypto world participated, including Justin Sun, Charlie Shrem and Changpeng Zhao himself. Now, and after the 12th BNB burn in history, Changpeng Zhao gives his insight on Binance’s past 3 years.
The twelfth burn of BNB
Thus, Changpeng Zhao opens his post on the Binance blog, celebrating the achievement achieved with the twelfth BNB burn in history. This is the largest burning of the cryptocurrency since its launch, withdrawing the equivalent of $ 60,500,000 from circulation. Eight million more than in the previous burn when only $ 52,466,000 was withdrawn.
Burning cryptocurrencies is an activity carried out in some Blockchains, with the aim of limiting the supply of the virtual currency in circulation, and therefore, guaranteeing the value of the crypto asset for users. Avoiding, so that an excess in the monetary issue depreciates it and generates inflation.
This would be a method used mainly by cryptocurrencies that do not have an automatic mechanism for limiting the money supply, as if it exists in currencies such as Bitcoin through Halvings. Therefore, burning becomes the only alternative to avoid an inflationary phenomenon. The huge size of the BNB burn being an indicator of the increasing increase in the use of the Binance currency.
Changpeng Zhao talks about Binance
But the most interesting thing about the post written by Changpeng Zhao, is his appreciation of the current situation of Binance. Listing the multiple achievements that the exchange has achieved since its birth. Including future contracts, the fiat money market, the stablecoin BUSD, the purchase of CoinMarketCap and Swipe, and of course the alliances with BitTorrent, Brave Browser, and BitPay.
In order to go on to briefly relate the history of Binance, in an attempt to show how the culture and the attempt to decentralize as much as possible by the company, has been maintained since its founding with an Initial Coin Offering (ICO) in the year 2017.
Going through big challenges like his transition to remote work, after China banned crypto exchanges in September of the same year. When Binance had to use 40% of its funds ($ 6 million at the time), just to protect its users from losses.
A move that, although risky from a financial point of view, made Binance gain a strong reputational boost, with thousands of users migrating to the exchange. Thanks to which, during the peak in the price of Bitcoin in December 2017, Binance was already the first exchange in the world by volume of transactions.
Binance’s work to build a solid financial infrastructure did not stop even during the crypto winter after the 2017 rally. Well, the exchange and its team took advantage of this time period to travel the world promoting cryptocurrencies. Lobbying for the adoption of modern regulations for the crypto market during the financial uncertainty of 2018.
An effort that had its counterpart on the technical level, where the performance of the exchange continued to improve. This could not be avoided in the 2019 attack, in which users lost $ 42 million, which had to be covered by the Binance fund.
However, as Changpeng Zhao comments, this setback could not prevent the company from continuing to develop. Launching a series of new products in 2019, with Binance Chain at the center, and preparing what has been a real blitz of novelties so far in 2020.
Until reaching the current moment, in which decentralization and the motto “put users first and do the right thing”, has led Binance to become the world’s leading crypto company. With Changpeng Zhao leading an ecosystem of unmatched products and services. Which, if we pay attention to what is written in his post, will only continue to grow in the coming years.