Changpeng Zhao, also known as CZ, is a billionaire businessman and software engineer who has made a significant impact in the world of cryptocurrency. As the co-founder and CEO of Binance, the largest cryptocurrency exchange in the world, Zhao has played a crucial role in shaping the future of digital currency. But beyond his success in business, Zhao’s personal journey and philanthropic efforts also make him a notable figure in the global community.
Early life And Career
Zhao was born in China’s Jiangsu province and moved to Canada with his family when he was 12 years old. His parents were both schoolteachers, but his father was later exiled due to being labeled as a “pro-bourgeois intellect”. Growing up, Zhao had to take on various service jobs to support his family, including working in a fast food and a gas station. He attended McGill University in Montreal, where he majored in computer science.
After graduation, Zhao worked as a developer for Bloomberg Tradebook and gained valuable experience in futures trading software. He then moved to Tokyo for an internship at the Tokyo Stock Exchange before returning to work full-time at Bloomberg Tradebook.
The Birth of Binance
In 2013, Zhao discovered Bitcoin and became fascinated with the concept of cryptocurrency. He left his job at Bloomberg and joined blockchain wallet provider Blockchain.info as the head of development. In 2017, he co-founded Binance along with Yi He and Roger Wang. The platform quickly gained popularity due to its user-friendly interface and fast transaction speeds.
Binance also introduced its own cryptocurrency, Binance Coin (BNB), which quickly became one of the top cryptocurrencies in terms of market capitalization. In just a few years, Binance has become the go-to platform for trading and investing in various digital currencies.
Binance Coin is the native token of the largest currently operating cryptocurrency exchange, Binance. To verify transactions on the Binance network, a combination of Proof of Stake (PoS) and Proof of Authority (PoA) consensus mechanisms is used. By combining two transaction verification models, it was possible to achieve high processing speeds and reduce network fees.
The BNB Chain roadmap for 2023 plans to introduce updates aimed at improving the performance of the blockchain, further reducing fees and new opportunities for developers.
How Binance Coin (BNB) came to be
Binance coin was launched in the summer of 2017 during an initial coin offering (ICO). At the time of launch, the asset was worth about $0.1. Initially it was based on the Ethereum blockchain. A total of 200 million tokens were issued. The coins were distributed as follows: 10% were offered to investors, 40% to the founding team, and the remaining 50% were received by the remaining ISO participants. Approximately half of the proceeds were spent on Binance branding and marketing, and a third on creating the Binance platform and ecosystem.
In February 2019, the coin entered the TOP 10 most capitalized cryptocurrencies and is steadily holding its position. In the spring of the same year, the token was moved to its own blockchain Binance Chain with a simultaneous change in the standard from EPC20 to BEP-2.
What is Binance Coin
Binance Coin combines the functions of a means of payment, a discount card and a management token. In its native ecosystem, the coin performs the following functions:
- Used to pay any commissions on the platform.
- Entitles you to discounts when paying commissions.
- Accepted as payment for goods and services.
In addition, BNB, like any other cryptocurrency, is traded on crypto exchanges. Directly on Binance, it is part of more than 50 trading pairs of the Crypto/Fiat and Crypto/Crypto types. The BNB/BNC exchange rate is largely formed on this platform.
To counteract inflation, the ecosystem practices quarterly burning of tokens. Since 2021, the Auto-Burn algorithm has been launched to calculate the number of tokens to be destroyed. Now the burning process is independent of the centralized exchange and is more objective. In addition, part of the gas fee in the BNB Chain is still burned. The last quarterly token burn took place on July 28, 2023. A total of 1,991,854.33 BNB worth approximately $484,160,000 were destroyed. The burning of coins will continue until their number reaches 100 million units.
Prospects for Binance Coins
The coin is used in the BNB Beacon Chain, BNB Smart Chain networks, and in the future it is planned to be used in networks in the second layer network of opBNB and BNB Greenfield, which are preparing to launch. That is, the future of the asset depends on the overall performance of the crypto industry and specifically the development of its native ecosystem.
At the time of writing, the coin is trading slightly above $212. This value is very close to the 2022 minimum and perhaps this is a good time to exchange USDC to BNB. Analysts are optimistic and believe that the BNB will rise in price in the future.