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Binance Cryptocurrency Exchange, which was launched with 0% trading fees to try to stimulate competition among the stock exchanges. announces its first quarter results and reveals that, as expected in its white paper, it burned 986,000 pieces Binance (BNB), worth about 1.5 million dollars. These, revealed the exchange, equaled 20% of its profits.
The white paper of the exchange specifies that it will buy 50% of its total reserve of chips, which is equivalent to 100 million BNB tokens, further improving their value. On a LindkedIn post, the company's CEO, Changpeng Zhao, said it meant the company made $ 7.5 million in profits in the first few months and compared them to the $ 15 million it had collected during his ICO.
In the post, Zhao added that it was not easy for Binance to do it in her first few months because she had to deal with one of the biggest tours of the world. History of cryptocurrency: Chinese repression. NCC said the company should withdraw tokens, issue refunds on ACIs and block access in Chinese.
He further revealed that community support was vital to the survival of the stock market, and that the rest of his Q1 earnings would be reinvested in growth to generate even more revenue in the next quarter. New features and new currencies were teased, but Zhao did not reveal much details.
Interested in Binance's relationship with the cryptocurrency community, and by his approach to Chinese repression, CCN discussed with Changpeng Zhao how the exchange has arrived, from his vision of crypto-currency. currency and more. Here is the interview:
NCC: How did you come in first in bitcoin? What did you see in cryptocurrency?
CZ : I started doing bitcoin thanks to a recommendation from Ron Cao, who was the managing director of Light Speed Ventures in China. It was early 2013. I have also known Bobby Lee for a few years. Bobby just joined BTCChina at that time. I watched Bitcoin and I left my 8 year old start up shortly thereafter. It was clear then that it's even clearer now, crypto is the future.
Cryptocurrency have obvious advantages, and a little less shortcomings in relation to fiduciary currencies. Having lived and worked in many places around the world including Vancouver, Montreal, Tokyo, New York, Shanghai and HK, I liked the lack of crypto borders. Cryptocurrency is the real international currency.
NCC: Why did you decide to launch Binance?
CZ : It's an old idea actually. I had this idea in 2013. I see two types of exchanges at the time. There should be a handful of exchanges in each country, managing the encrypted file exchanges. There would also be a handful of crypto-crypto exchanges around the world, dealing with pure cryptographic conversion. After joining Blockchain.info, we discussed it at length. This vision has not changed much over the years.
After joining Blockchain.info in 2013, we discussed it at length. But it was too early. There was simply not enough good value at the time. The mission was more people from fiat to crypto. After leaving OKCoin in 2015, we re-examined the idea, but decided that it was still too early. But now, the time has come.
NCC: How Did China's Repression Affect Exchange?
CZ : He affected different exchanges in different ways. Many Chinese exchanges have been closed. Fortunately, we were still registered outside of China, and we had our servers outside of China when the news came out. We have not been affected as much. In fact, we benefited a bit because of less "competition" in the end.
NCC: What went through your mind when information was released?
CZ : There were rumors long before the official news was published. We felt that the news would not be good, so we prepared ourselves in advance. And acted quickly. This has proved to be crucial in managing the situation. Even then, when the news came out and their application was followed, I was surprised. I've learned again that it's better to be prepared than sorry.
NCC: Given the recent crackdown, how will ICOs and regulations mix in the future?
CZ : I can not predict future settlement changes. It's a hard one. But we can logically expect people to adapt. They go where the regulations are favorable. We already see a lot of strong projects, talented people and vast funds moving away from countries that are unfavorable to countries that are. Countries with smart regulation will attract and grow them.
NCC: Do you believe that China will resume cryptocurrency trading by granting exchange licenses?
CZ : Again, I have no idea about this one. It is difficult to predict what the government will do. Even a single government is made up of many different divisions and people. They each have their own point of view and agendas. It's just hard to predict.
NCC: Where do you see Binance in the next five years?
CZ : For the moon, haha. I think Binance is well positioned for explosive growth now. We were lucky that we grew quickly from the beginning, we came to a point where we could handle the changes when that happened. In a sense, the changes have erased the slate, now we left for the races. In general, I do not like when the startup team starts wanting to build eco-systems. So we have not stated a lot of things in our white paper, but we are in a strong position to do it. And we will do it quickly. We will launch Binance Labs, an incubator for blockchain startups. I have not spoken to anyone else before, you are the first. But do not hesitate to publish it. It will come very soon. We plan to build a strong ecosystem over the next five years.
CCN: On a LinkedIn post, you said that new features will come out. Can you give us a scoop?
CZ : Haha, it was a good teaser. They will come out soon enough, and everyone will know it.
NCC: Is the Cryptocurrency Market a Bubble?
CZ : No, absolutely not. We have just seen how the price of bitcoin can withstand the pressure. If you imagine shares of a company on a stock exchange, facing this kind of pressure from the government, their price would have gone to 0 for a long time. The fact that the price of bitcoins is high testifies that it is not a bubble. In fact, it is extremely solid.
Are some of the ICO projects overexpressed? Very possible. But it depends on the project, I think, not the global market. You must always select individual projects carefully.
NCC: What is Binance's point of view on the upcoming Bitcoin Gold and SegWit2x forks?
CZ : We must always support the forks from a retreat point of view. We will always make sure that our traders have the split coins, because they will probably have some value, no matter how big they are. We never steal from our merchants their deserved value.
In exchange, we do not control the forking. The miners do. We have an influence on what is traded (ie liquidity). We will decide what to trade using our standard review process. If the range generates enough interest, we will activate the trading pair.
For us, we do not have a philosophical point of view on the best fork. Small blocks or big blocks, it does not matter too much. If it was up to us, we just wanted a fork that was not cluttered, low transaction fees and many users.
NCC: Information on when the decentralized exchange of Binance will be launched?
CZ : This is a medium-term project. There are many implementations of decentralized exchanges. But we believe that the technology has not yet reached a point of explosive growth. We keep a close eye on this area, and we strongly support other decentralized exchange initiatives. We have listed 4 up to now: AirSwap, Kyber, OpenANX and Loopring on our exchange. Binance already has its own team working on some prototypes, but there is still a lack of technology, so it will not be too early. We want ours to stand out, much like what we did with our centralized exchange.
NCC: Is there anything else you would like to share with our readers?
CZ : Many people still have the misconception that Binance is a Chinese exchange. We are not. In fact, it's the only market we do not serve right now. Binance just has a few new offices in a few different places. We are here to build a true international crypto exchange. I am bullish.