The story of Binance’s rise to the top of the cryptocurrency space is well known, documented, and admired. The exchange has barely been around for more than three years, yet it sits at the pinnacle of the cryptocurrency exchange game.
But, headed by the personable Changpeng Zhao, Binance has become far more than just an exchange offering the usual services, it has become a significant player in several different sectors of the vast blockchain and cryptocurrency market – and that just keeps expanding.
This week, Binance announced its open-source development platform, dubbed ‘Binance X.’ This came only days after launching a cryptocurrency lending platform that would allow users to “earn crypto while they sleep.”
Don’t forget about the Binance Dex, or indeed the revolutionary Binance coin on which a lot of this success was predicated on. The Binance Coin (BNB) has been a significant part as to why Binance has succeeded as much as it has in such a short time. The token was introduced for a small, but significant reason, and from there, its utility and worth has exploded almost as much as the exchange itself.
Zhao explained on the podcast, Flippening, about the utility token’s utility and how the Binance brand has become more about being an ecosystem than simply an exchange
“In our case, given that there’s a BNB token, which is a utility token that now has more than 100 uses. I think last time we counted 112. So it’s no longer just about growing the company value. It’s about growing the ecosystem value,” he said.
“So the more people who use BNB, the higher value BNB is. And that’s beneficial for everyone that’s involved. Not just our team members, but also our angels who do not get paid a salary. Our community members, our investors. So there’s a different type of dynamic that’s involved once there’s a token issued. So you actually want to grow the ecosystem value.”
Indeed, Binance is cornering every edge of the market with its ecosystem approach, which leads one to wonder if they can become the go-to for almost any need within the broad market.
Exchange services are essential, as are decentralized exchange ones; then there is the lending side of things, and now the developer aspect too, this truly is rapid expansion but is it big enough to be considered a monopoly?
One key factor about the cryptocurrency space is that it has always been about getting away from a centralized power and while Binance even offers an option to get away from that in terms of its exchange services, it still feels like there can be a little too much yellow and black branding around.
Then again, in a space that is still so new, and untested or trusted, a bit of brand recognition and reliance can make all the difference. Even when faced with hacks and lousy press, Binance has always handled things well and without panic. Thus, having their hands across this nascent market could be the necessary trust needed for further adoption and growth.