Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Feb 16, 2021
How a Crypto Billionaire Built an Exchange in Eight Months

How a Crypto Billionaire Built an Exchange in Eight Months

Zhao Changpeng’s rise has been extraordinary, even by cryptocurrency’s standards. Binance, the exchange he founded in 2017, turned a $200 million profit in its second quarter of existence, transforming the formerly-obscure founder into an industry titan who claims to be worth $2 billion. How did Binance, a company without a public address and no bank account, become a behemoth in such a short time?
 

From Crypto Advocate to Exchange Founder

Zhao’s background in computer engineering, coupled with an early career developing trading systems for multiple companies, laid the groundwork for his move into digital currencies. He spent time on digital wallet provider blockchain.info’s payroll before founding Binance in July 2017. The company raised $15 million in an initial coin offering, launched its exchange 11 days later, and has since become extremely popular with crypto traders. At the peak of the 2017 cryptocurrency boom, the site was hosting $11 billion daily in trades.
 

Low Oversight, Huge Following

Binance has attracted a loyal following for several reasons. Crypto investors consider its trading system to be extremely reliable, and its 0.1% transaction fee is one of the lowest among major exchanges. Binance has also fended off the ubiquitous hacker thefts that have plagued the crypto world, including a “large-scale phishing and stealing attempt” earlier in 2018. They also maintain a sterling reputation for avoiding government oversight – even by the crypto boom’s Wild West standards – that endears them to users who particularly value digital currencies’ potential to replace financial norms. This is partially aided by the fact that Binance does not allow trades for fiat currency; it only facilitates trades between cryptocurrencies, using other exchanges to enable crypto-to-cash deals.

An air of secrecy surrounds the company – Zhao has not revealed the locations of Binance’s offices and servers (which makes it difficult to determine which country’s regulatory laws apply to the company), asks employees to be stingy with details about the operation, and admitted in an interview to looking for creative solutions to avoid “unnecessary” regulation.
 

Increased Scrutiny

Users are drawn to the exchange because of its desire to avoid government oversight, but that ironically has brought an increasing amount of attention from regulators as cryptocurrency moves into the mainstream. The exchange lists 100-plus coins sharing traits with securities, but with none of the protections that protect investors in regulated exchanges. Anonymity is prioritized to what some might argue is extreme – users can sign up with just an email address and immediately withdraw the equivalent of two Bitcoins, or more than $15,000, raising concerns about money laundering. They also created a referral program offering commission-sharing as enticement – some experts estimate this could effectively make Binance unlicensed securities brokers.

 

 

What’s Next for Binance?

Zhao remains undaunted even as securities regulators in Hong Kong warned Binance to cease trading cryptocurrencies that qualify as securities. Inquiries from Japanese officials also forced the exchange to alter plans for a permanent office there. Zhao has stated a desire to work with regulatory officials, defended his company’s approach for selecting coins to list as heavily researched and noted that he asks issuers to provide legal opinions that state the coins are not securities. He has also made recent overtures with the Maltese government, who are situating themselves as a cryptocurrency-friendly hub for Europe, about setting up a crypto-to-cash exchange there – something the prime minister has endorsed. But for all Zhao’s bullishness on digital currencies, it is becoming more and more clear that Binance will need to be comfortable in better-regulated environments.
 

Interested in Trading Cryptocurrencies?

Cryptocurrencies are complex, and an investor is often venturing into the unknown when buying and selling. Don’t be one of those investors. Tickeron has resources to help you get started in cryptocurrency investing, from an extensive library to learn terms and definitions, to Artificial Intelligence that is trained to find patterns and trends in the crypto markets. Learn more about Tickeron’s resources and tools at tickeron.com.

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.