Binance is a cryptocurrency exchange founded by Changpeng Zhao in China, in 2017.
Although Binance had a late start when compared to Poloniex, Bitfinex and others, it quickly gained market share and became one of the most popular cryptocurrency exchanges.
One of the key features behind Binance’s explosive growth was its referral commission program.
When a user signs up using a specially crafted link, the referrer earns 20% of everything this user spends on the exchange – for life. This generous commission structure led users to flood social channels with Binance signup invitations.
Regulations and Move
Binance was founded in China but moved out during the country’s 2017 crackdown on cryptocurrencies.
The exchange headquarters were moved to Malta, Bermuda and other destinations. Today the company operates globally, with several companies registered in several different countries.
Binance reports the world’s largest trade volume but since the exchange does not operate in fiat currencies the comparison ends up being innacurate.
Exchanges which use fiat currencies usually report much smaller volumes than stablecoins do. This may or may not be related to stablecoins not being fully backed by fiat currency. Tighter regulations also influence trade volume because users are unable to move fiat in and out of their countries as easily as they can move stablecoins.
Funds are SAFU
Changpeng Zhao has a great presence on social media and engages with users daily.
One of his most famous lines is “funds are SAFU”, which he uses to tell customers that their funds are 100% secure.
— CZ Binance (@cz_binance) March 11, 2019
According to Binance, SAFU means “Secure Asset Fund for Users”, but it’s speculated that the acronym may have other meanings.