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November 9, 2018

Binance Eyes Crypto Dominance and Increase of Corporate Investors

By Daily Hodl Staff

Binance, the world’s largest cryptocurrency exchange by volume, has been making moves to attract high-volume traders and establish itself as a global powerhouse. It recently opened a new headquarters in Malta, expanded to Jersey and Liechtenstein and launched new exchanges in Uganda and Singapore.  

Tiered trading discounts have sparked activity from institutional investors.

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Binance says part of its strategy is to focus more on supporting corporate account holders with a straightforward registration process. Users can create an account, upgrade to institute/ corporate level, verify themselves and once the application is approved, they can withdraw up to 100 BTC a day.  

Binance explains that their API system is a key component.

“To ensure maximum security, we offer multiple API access levels with customization for transfer, trading and read-only permissions. Furthermore, we have settings to limit the addresses that funds can be withdrawn to, preventing withdrawal of funds to a foreign address.”

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The exchange is also providing new services to traders of all levels.

“Our new division Binance Research provides open-access, institutional-grade research reports on blockchain projects, with an eye on increasing transparency and improving the overall quality of information available within the cryptocurrency space.”

Several new feature will roll out in Q4, including support of up to 200 sub-accounts, no-free transfers of funds between sub-accounts and full control of sub-accounts, including resetting 2FA, removal of API keys/orders and passwords, or even freezing the sub-account.

Despite the epic growth of Binance, CEO Changpeng Zhao recently said in an interview that he would not recommend spinning up a brand new exchange, particularly now that trading volumes are down 90% from their peak in January.

“Starting an exchange is always a really bad idea, to be honest. It’s never a really viable business model. The chance of success is very low, probably lower than most regulated internet startups. Exchanges is one of those hard businesses to start and run, regardless of the market condition. I think right now people have definitely slowed down a bit, but I believe there are still more exchanges than there are coins. So there are still more people trying to do exchanges than there are starting other projects. But running an exchange is still really, really difficult. You’ve got to get security right, customer service right. You’ve got to have the system product easy to use for everybody around the world, to have fast access. All of those problems are extremely hard to solve. So for anybody who wants to have a healthy lifestyle, I would never recommend them to start an exchange.”

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