Binance skirted regulation to become the world’s largest cryptocurrency exchange by trading volume. Now, the company has pleaded guilty in the U.S. and agreed to pay $4.3 billion in fines. Here’s how the same strategy behind the company’s rise brought it crashing down.
How Binance And CoinBase Make Money
Binance and Coinbase, along with most crypto companies also offer, staking rewards provide crypto owners a chance to receive income for supporting the token as part of the verification process. Typically, an exchange simply deposits your income, net of any fees, into your account. Coinbase and Binance take a commission on your rewards.
What is Binance NFT Marketplace & How to Use It
Binance’s NFT Marketplace is a new platform for creators and collectors to mint and trade NFTs. Everyone can now create non-fungible tokens and experience the benefits of unique, digital ownership rights.
The Importance and Challenges of Token Economics
In this panel at the Malta A.I. & Blockchain Summit, token economics is discussed. The panelists are: Sebastian Markowsky – GP Bullhound; Godwin Schembri – KnowMeNow; Wei Zhou – Binance; Sarah Olsen – Gemini; moderated by Olga Finkel – WH Partners;
Olsen discusses the importance of a stable coin and the challenge of regulation.
Schembri talks about security tokens.
Markowsky talks about what type of tokenization is attractive to investors and getting the incentives right. He advocates an interlinked multi-token model for the purpose of utility and security/investment.
Zhou talks about the “Binance Effect,” which he describes as contributing to the perception that a token is premium, since Binance only lists 3% of the tokens that apply. He emphasizes the need for clarity in regulation.
This discussion was part of the Tokenomics & Crypto Conference.
What is Binance?
Binance is a crypto exchange for buying and selling cryptocurrencies. Some of the factors that have made it attractive to crypto traders include its availability in multiple languages, fast order processing and the fact that it transacts numerous digital currencies.
Binance is only for trading cryptocurrencies, and does not handle fiat currencies.
Due to evolving global regulations, Binance moved from China, where it was established, to Japan and then Taiwan and as of March 2018, relocated to Malta (Island country south of Italy).