WHAT’S BEING CLAIMED:
- Binance, the world’s top ranking cryptocurrency exchange is adding a “couple of million” members every week as the cryptocurrency mania continues to explode.
- Binance did not expect the rapid growth and even needed to place a temporary suspension on new traders due to high demand.
- On Wednesday, the company added 240,000 new users in just one hour after it lifted a temporary ban.
Binance is a cryptocurrency exchange based in Hong Kong focusing on the Chinese market and other Chinese coins. It began live trading in July 2017 after a successful initial coin offering (ICO). It was hailed the biggest exchange on the planet at the end of 2017.
“We did not expect this kind of growth to be honest,” Binance CEO Zhao Changpeng admitted to Bloomberg TV.
Coinmarketcap, a website that tracks cryptocurrency markets, reported that Binance was the most active cryptocurrency exchange over the past 24 hours with $6.1bn (conversion) worth of trades.
TRON was the most popular digital currency trading on Binance. It accounts for 10 percent of Binance’s trading. Bitcoin ranked only third as the most popular digital token on the platform.
Male customers aged 25-35 are the majority of the 4 million accounts Mr. Zhao oversees on Binance.
“There’s a lot of guys with a lot of money”, he said. “[I see] $10,000 to $100,000 each day, some even bigger.”
Mr. Zhao decided to move from China to Tokyo when Chinese premier Xi JinPing placed a ban on cryptocurrency exchanges in September 2017.
The CEO said trading on Binance has considerably grown in the U.S., Japan, and Korea. And for the UK, he described trading volumes as “big”.
The quick success of cryptocurrencies like bitcoin has gotten the attention of Wall Street executives.
Billionaire Warren Buffet told CNBC on Wednesday that cryptocurrencies will “almost certainly…come to a bad ending”. But JPMorgan CEO Jamie Dimon said he “regretted” calling bitcoin a fraud.
It’s “good that Jamie Dimon admitted he was wrong,” Mr. Zhao told Bloomberg. He warned other finance chiefs about speaking ill of cryptocurrencies.
“Warren Buffett is a guy I truly respect from an investment point of view,” Zhao said. “But I do not think he understands cryptocurrencies at all. It is what it is. I still respect him in other parts of his expertise. But I think on cryptocurrencies he’s making a big mistake.”