The ascent of Binance within the cryptocurrency industry is a compelling narrative marked by strategic foresight, bold decisions, and resilience. This account reconstructs key episodes from the exchange’s early development, offering insights into both its operational philosophy and the volatile environment in which it flourished.
The Beginning: A Fateful Game of Cards
In August 2013, a casual card game in Shanghai set in motion a series of events that would shape the future of digital assets. Among the players were Bobby Lee, founder of BTCC (one of China's earliest Bitcoin exchanges), and David Cao, then a partner at Lightspeed Venture Partners. It was Cao who suggested that Zhao Changpeng—known widely as CZ—should explore opportunities in Bitcoin or blockchain. Lee, in turn, advised CZ to allocate 10% of his net worth to cryptocurrency.
CZ, a computer science graduate from McGill University, had already built an impressive career. He had developed trading systems at the Tokyo Stock Exchange, worked on futures trading at Bloomberg, and later established Fusion Systems in Shanghai, creating high-frequency trading software for international banks. Taking the advice to heart, he eventually sold his property in Shanghai and invested significantly in Bitcoin.
This decision marked CZ’s full immersion into crypto—a sector where he would soon build an empire.
Launching the Binance Token
By mid-2017, CZ had accumulated nearly four years of experience in crypto, including senior roles at several blockchain companies. During a dinner in Chengdu, he listened as two founders discussed Initial Coin Offerings (ICOs). The idea resonated deeply: a startup could raise capital based on a concept outlined in a whitepaper and by issuing its own token.
In late June 2017, CZ founded Binance—a name merging “binary” and “finance”—and published its whitepaper. The Binance Coin (BNB) sale began soon after, raising $15 million by early July. However, when BNB hit the open market on July 25, its value dropped by 20%. Despite efforts to stabilize the price, the token struggled initially.
The team had promised to build “a world-class cryptocurrency exchange,” a vision that now weighed heavily on CZ. It was, by his own account, one of the most stressful periods of his life.
The Role of He Yi
He Yi, formerly known as He Ying, entered the crypto scene through an introduction from OKcoin investor Mai Gang. A well-known TV host, she had presented travel and culture programs before joining OKcoin in 2013. There, she played a key role in raising the company's public profile and even recruited CZ as Chief Technology Officer.
After a stint at Yixia Technology—where she helped launch live-streaming app Yizhibo—He Yi returned to crypto in August 2017. She joined Binance as a co-founder and Chief Marketing Officer. Her arrival had an immediate impact: within two weeks, BNB surged by 1,800%, from $0.13 to $2.45. Her influence earned her the nickname “First Sister of Crypto.”
Relocating Under Pressure
By late summer 2017, China’s cryptocurrency frenzy was attracting regulatory attention. Binance’s Shanghai office was overcrowded, with employees sharing desks. When CZ learned that authorities were scrutinizing crypto exchanges, he faced a difficult choice: shut down or relocate.
He chose the latter.
In secret, the team migrated its servers from Alibaba Cloud to AWS. By August 30, the transition was complete. The entire operation moved to Japan—weeks before China’s infamous September 4 ban on cryptocurrency trading.
The timing proved fortuitous. From September to December 2017, Bitcoin’s price increased fivefold. New users flocked to exchanges, and Binance’s daily trading volume soon reached $10 billion.
Overcoming a Security Breach
On March 7, 2018, CZ received urgent calls while at a bar in Tokyo: unusual trading activity suggested a security breach. Hackers had used fake Google ads to phish user credentials, then manipulated accounts to buy obscure tokens.
Binance acted swiftly, freezing suspicious withdrawals and rolling back fraudulent transactions. No funds were lost, but the event damaged trust. Two weeks later, Japanese regulators demanded that Binance obtain a formal license—a requirement the young company couldn’t immediately meet.
So began Binance’s second relocation, this time to Malta, known for its favorable crypto regulations.
A Clash with Investors
Months earlier, in August 2017, Sequoia Capital had engaged with Binance regarding a potential Series A investment. Negotiations stalled over valuation disagreements. When reports surfaced that IDG Capital had approached Binance with a much higher valuation, tensions between CZ and Sequoia escalated.
In April 2018, Sequoia sued Binance for violating an exclusivity agreement. CZ responded on Twitter, mocking the idea that a traditional VC would fund an ambitious crypto project. He ended his post defiantly: “The crowd did, and made it.”
Other industry players, including Sequoia-backed Huobi, joined the dispute. By July, a court had dismissed Sequoia’s lawsuit—a outcome many saw as a symbolic victory for decentralized finance over traditional investment models.
Embracing Decentralization and Expansion
From its new base in Malta, Binance began experimenting with remote work. Using Telegram for coordination, the team adopted a distributed operational model. This flexibility supported rapid expansion: throughout 2018 and 2019, Binance launched leverage trading, lending services, P2P trading, and more.
In the third quarter of 2019 alone, Binance released 12 major products—more than its 12 largest competitors combined. The company’s culture emphasized relentless execution; offices worldwide were equipped with IKEA sofa beds for all-night work sessions.
He Yi noted that division leads had enough influence to launch their own tokens. But CZ envisioned something broader than an exchange—he wanted Binance to become an ecosystem and an infrastructure provider for the entire blockchain space.
By 2021, his ambition had paid off: CZ was named the wealthiest person in the Chinese diaspora.
Frequently Asked Questions
What is Binance known for?
Binance is one of the world’s largest cryptocurrency exchanges, offering trading, staking, lending, and a suite of blockchain-based financial products. It is recognized for its rapid growth and global user base.
How did Binance handle regulatory challenges?
The company adopted a proactive and mobile approach, relocating operations to more favorable jurisdictions when faced with regulatory pressure. This agility allowed it to continue growing despite evolving legal landscapes.
What role did BNB play in Binance’s growth?
BNB, the native token of the Binance ecosystem, was initially launched through an ICO. It is used to pay trading fees, participate in token sales, and access various services within the platform, contributing to user loyalty and ecosystem growth.
Why is Binance considered controversial?
The exchange has faced criticism over its regulatory status, operational transparency, and historical security incidents. However, it has also been praised for its innovation and role in advancing crypto adoption.
Can beginners use Binance safely?
Yes, Binance offers user-friendly interfaces and robust security features, including two-factor authentication and anti-phishing codes. New users should start with small amounts and familiarize themselves with the platform’s security settings.
What is the future of Binance?
Binance continues to expand its product offerings, including decentralized finance (DeFi) solutions, NFT marketplaces, and educational initiatives. Its evolution reflects a broader shift toward integrated blockchain-based financial systems.
The journey of Binance illustrates how vision, adaptability, and decisive leadership can forge success in a turbulent industry. From its initial token sale to its global presence today, Binance has navigated regulatory, technical, and competitive challenges with notable resolve. For those interested in the mechanisms behind leading crypto platforms, 👉 explore more behind-the-scenes strategies.
This article is based on public sources and is intended for informational purposes only. It does not constitute financial or investment advice.