The last two years for Binance, the world’s largest cryptocurrency exchange, have been a whirlwind. Regulatory battles, hefty fines and even the arrest of its founder CZ, the exchange has painted a portrait of an industry titan under siege.
However, Binance escapes unscathed. On Saturday, the exchange announced that it had surpassed a staggering 200 million users, solidifying its position as the undisputed king of crypto.
Richard Teng, CEO of Binance, attended the company’s celebration and extended his best wishes to users. He admitted that community support was a major factor in the success of the trip. His message read:
We reached 200 million Binance users! This milestone would not have been possible without YOU – our incredible community… Thank you! The journey to 1 billion users continues. Let’s continue to build together.
Unfazed by the storm
This important step comes amid intense scrutiny. Since 2022, the company has faced numerous regulatory hurdles from countries like the United Kingdom, Singapore, and the United States.
Accusations of lax anti-money laundering measures and unregistered securities offerings have led to heavy fines and trading limitations. In a particularly dramatic twist, news of CZ’s arrest in China in early 2024 surfaced, sparking fears for the future of the stock market.
Today we celebrate 200 million – and it’s because of YOU!
Your support is at the heart of our journey to 1 billion users.
Make way for the stars of our history: you!#Binance200M #Binancien #Binance pic.twitter.com/3cWTEHxg7j
– Binance (@binance) June 8, 2024
However, the crypto exchange appears to have weathered the storm remarkably well. Not only did it maintain its user base, but it also managed to grow it significantly.
Compared to the reported 130 million users in 2023, Binance added 70 million in just two years. This resilience suggests deep user loyalty, perhaps due to its wide range of crypto offerings, competitive pricing, and user-friendly platform.
Growing concerns
While Binance’s growth is undeniably impressive, it also raises concerns about the increasing centralization of the cryptocurrency market. With a user base representing no less than 35% of the global crypto community (estimated at 562 million in 2024),
The company wields immense power. A potential future scenario in which Binance experiences a security breach or faces stricter regulations could have a devastating ripple effect on the entire crypto market.
Unanswered questions
The announcement of this milestone attributes the growth to a perfect alignment between Binance’s products and market demand. However, he does not specify what motivates this request.
Are users attracted to Binance’s vast coin selection, the convenience of its mobile app, or are they simply ignoring the controversies surrounding the exchange?
Featured image from Alamy, chart from TradingView
