As we see cryptocurrency names come and go, with hundreds falling to a price of 1 cent or even fading out completely, the key questions will be how many will survive and the most interesting question will be, which names will come out the other end stronger? Bitcoin fell from its high of near $20,000 in December of 2017 to just under $6,000 over the summer and is now trading in the $7,000 to $7,400 range. Clearly this coin is searching for price equilibrium and while it forms a base, it is still trading approximately 60 percent lower from the start of 2018. But while Bitcoin proves that it is playing the long game, other coins are falling to levels that clearly takes them off the radar – Darwin is now visiting the crypto world.
Here is Japan we have seen waves of exchanges apply and fail, others that just didn`t have the team nor experience to carry out their elaborate plans, and finally the 16 self regulating exchanges that form the core of the Japanese crypto-market. Of course, some of these exchanges are first tier and clearly have a future in the crypto business for the Asia Pacific Region. However, we see one exchange that seems to stand out in the region, one that has been built by an experienced team in Hong Kong but has since moved to Europe.
Binance is a cryptocurrency exchange founded by CEO Changpeng Zhao, known in the market as CZ, who by the way was part of that winning team at Fusion Systems of Tokyo. Note that as we explore the tech trading and crypto world, this name Fusion comes up often for its cutting-edge systems and successful entrepreneurs who got there start there. Mr Zhao apparently started the Fusion Systems in Shanghai in 2005, but his story has an interesting start. Zhao was born in Jiangsu province in China, but his family moved to Canada in the late 1980s, where he graduated from a top university, McGill University in computer science in Montreal, Quebec.
After working in Tokyo for the Toky0 Stock Exchange and serving as chief technology officer at OKCoin, Mr Zhao started Binance in 2017, with $15 million of funding raised during an initial coin offering or ICO. From humble means, Mr Zhao has built Binance into a leading and very global exchange – clearly he is using his computer science degree from McGill to its full extent.
More recently, Binance, along with three other big exchanges has raised capital for a stable coin project, on that avoids the notorious volatility of Bitcoin and other digital currencies.
So it seems that when the dust settles in the crypto world, there will be only a few names standing in both the digital currency space and of course even fewer in the exchange space. Binance seems to be one that will weather the storm.