The 12th quarterly BNB token burn by Binance saw the destruction of 3,477,388 BNB, valued at approximately $60.5 million. This represents a 3% increase in the number of tokens burned and a 15% rise in USD value compared to the previous quarter, setting a new record in the history of Binance's burn events. This marks the sixth consecutive quarter of growth for the program.
This consistent performance highlights the underlying strength of Binance’s business model. Since Binance uses 20% of its quarterly profits to buy back and burn BNB, this most recent burn implies a net profit exceeding $300 million for the second quarter. To put this into perspective, such a profit figure would place Binance among the top 50 publicly listed companies in China in terms of profitability, comparable to major financial institutions like Hangzhou Bank and GF Securities. This demonstrates that Binance's revenue generation has surpassed that of many regional commercial banks.
This milestone also coincides with Binance’s third anniversary, a significant achievement in the volatile blockchain industry where the average project lifespan is just over a year.
From Humble Beginnings to Global Leadership
Only highly resilient enterprises can navigate existential crises, turning challenges into opportunities for sustainable growth.
Looking back, it’s remarkable to consider that Binance was just two months old when it faced its first major regulatory challenge in September 2017. Its strategic pivot to a global focus, starting with crypto-to-crypto trading, set the foundation for an incredible three-year journey.
By December 17, 2017, as Bitcoin reached its then-all-time high, Binance achieved a daily trading volume of $11 billion, becoming the world's largest cryptocurrency exchange by volume. Its CEO, Changpeng Zhao (CZ), quickly became a global icon, featured in Bloomberg interviews and on the cover of Forbes magazine, cementing Binance's place in the minds of digital asset enthusiasts worldwide.
In 2018, while consistently ranking at the top for spot trading volume, Binance moved its operations from Japan to Malta, a move that was met with both praise and criticism. While some labeled the company as "nomadic" or "non-compliant," its crypto-only model was arguably the most compliant approach available at the time. As the regulatory environment evolved, Binance diligently built out its fiat gateway services, which now span over 170 countries and regions through local payment partners and a peer-to-peer (C2C) platform.
The exchange also partnered with institutions worldwide to launch localized fiat-to-crypto platforms in numerous countries, including the United States, Jersey, South Korea, Singapore, Uganda, Australia, and the United Kingdom.
Innovation remained a core focus. In early 2019, during a market downturn, Binance’s Launchpad platform ignited the market with the Initial Exchange Offering (IEO) model, starting with BitTorrent. This novel approach was quickly emulated by competitors. To date, the 16 projects launched via Binance’s DEX and main platform boast average returns of 397% and 366%, respectively, far surpassing those on other exchanges.
After solidifying its dominance in spot trading, Binance expanded into derivatives in the latter half of 2019. The acquisition of the JEX platform was quickly followed by the launch of its own futures trading, eventually offering leverage of up to 125x. Data from CoinGecko shows Binance’s bitcoin futures daily volume now leads the market at $2.93 billion, with its combined derivatives volume consistently ranking in the global top three. The product suite continues to grow, with the addition of options trading in April and the launch of its own leveraged tokens in May.
Behind these impressive results lies immense effort: countless lines of code, around-the-clock security monitoring, and a dedicated team working tirelessly. As CZ noted, the company’s ability to turn severe challenges into "luck" was born from this relentless, behind-the-scenes hustle.
The core philosophy, as explained by Binance’s Chief Growth Officer Ted Lin during its second anniversary, revolves around seriousness, freedom, and remaining humble. The goal is not merely to profit but to普及 blockchain technology and digital currency to more people globally.
Today, Binance’s position as a leading exchange is unquestioned. However, as an industry "giant," its moves beyond mere trading are even more significant and worthy of attention.
A Strategy of Lightning-Fast Ecosystem Expansion
CZ has often cited Reid Hoffman’s book "Blitzscaling," and Binance’s growth mirrors this concept of rapid expansion. Beyond its diverse trading products, Binance has built an immense ecosystem encompassing an incubator (Binance Labs), cloud services (Binance Cloud), a mining pool, and a public blockchain, all while actively collaborating with other industry leaders.
Binance Labs, for instance, provides investment and incubation services for early-stage blockchain teams, guided by a top-tier mentor network, pushing the boundaries of blockchain innovation and encouraging development on the Binance Chain.
Externally, Binance has been aggressive in its acquisitions, bringing notable companies like the Trust Wallet, derivatives platform JEX, India’s largest exchange WazirX, payment platform Swipe, DApp data platform DappReview, and market data aggregator CoinMarketCap into its fold.
The acquisition of Swipe, which supports multiple crypto assets and Visa card payments for seamless spending, is a prime example. Binance’s scale helps accelerate the product's adoption, creating greater value for the entire industry. In 2019 alone, Binance completed 9 full acquisitions and invested in 21 companies.
These acquisitions expand Binance’s commercial reach and alter the landscape for blockchain entrepreneurs, for whom being acquired by a leader like Binance can be an ideal outcome. This strategy also serves as an encouragement to innovators across the sector.
Furthermore, Binance promotes open platforms, providing infrastructure for the entire industry. This includes Binance Cloud, which offers a turnkey solution for launching crypto exchanges; the open-source Trust Wallet; the Binance Angel network for community collaboration; and the Binance Chain, which provides the underlying protocol for dApp ecosystems.
Its ecosystem has exploded from 9 core services a year ago to over 29 products today, organized into five key segments: Binance Chain and decentralized finance (DeFi); investment and incubation; education, information, and social products; open platform services; and partner fiat and digital asset trading platforms.
Binance also partners with firms outside the crypto space. A collaboration with HTC resulted in the EXODUS 1-Binance edition blockchain phone, which supports Binance Chain and comes pre-loaded with Trust Wallet. A partnership with the Brave browser integrated a Binance widget, allowing users to access exchange services without leaving their browser. These collaborations not only drive user acquisition for Binance but also for the entire industry, creating new possibilities and breakthroughs.
Binance’s Evolving Presence and Focus in China
Originating from China but achieving success globally, Binance has been strengthening its presence as "Binance China" with a renewed focus on leveraging blockchain technology for industrial development—moving beyond its image as just an exchange.
In March 2020, Binance China partnered with Lingang Group to establish the Lingang Blockchain Technology Industry Research Institute. This initiative aligns with national priorities that emphasize blockchain as a core technology for innovation and industrial application. The institute’s founding coincided with the national "new infrastructure" strategy, which includes blockchain as a key technological foundation.
In June 2020, Binance China launched the "Digital New Infrastructure · Spark Initiative for 1000 Enterprises" to support small and medium-sized tech enterprises, using blockchain to empower real-world industries. It also introduced the Binance Smart Chain to bolster fintech development and foster application in vertical sectors like gaming, energy, patents, tourism, and real estate. The testnet, "Rialto," is already live and open-source, with a mainnet launch planned for the third quarter.
Binance China has already begun collaborating with traditional Chinese enterprises. A strategic partnership with Xinyuan Group aims to explore integrations between real estate and blockchain, accelerate the implementation of use cases, and co-innovate to create a hub for blockchain industry development.
Another partner, China Commerce United Supply Chain Management Group, a state-owned enterprise, is working with Binance China on innovation and application in supply chain and blockchain.
On the international stage, the Binance China Blockchain Research Institute joined the United Nations Global Compact in June 2020 to support sustainable development goals along the "Belt and Road" initiative, alongside nearly 15 other leading Chinese enterprises and institutions.
Collaborating with domestic industry giants to integrate blockchain technology with tangible sectors is refreshing Binance's image in China. Supported by its global technological prowess and vision, Binance China is well-positioned to participate deeply in the nation's blockchain development and application进程, boosting the domestic digital economy.
Beyond business, corporate social responsibility is reflected in philanthropy. During the early stages of the COVID-19 pandemic, Binance Charity donated $1.4 million worth of supplies to Wuhan and later expanded its efforts to include severely affected countries like Italy, Germany, Spain, and South Korea, with a total计划 to raise $5 million for medical supplies. This spirit of responsibility and commitment has helped shape an image that far exceeds that of a typical exchange.
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Frequently Asked Questions
What is the BNB burn mechanism?
Binance uses 20% of its quarterly profits to buy back BNB tokens from the market and permanently destroy them. This process reduces the total supply of BNB over time, which can potentially increase the token's scarcity and value.
How does Binance generate its profits?
The primary source of profit is fees from its various trading services, including spot, margin, and derivatives trading. Additional revenue streams come from its Launchpad platform, lending services, and other ecosystem products.
What is Binance's approach to regulation and compliance?
Binance states it actively works with regulators worldwide to promote the adoption of crypto assets. It has developed localized, compliant fiat gateways in numerous countries and invests in KYC/AML technology to ensure a secure trading environment.
What is the purpose of the Binance Smart Chain?
The Binance Smart Chain is designed to run alongside Binance Chain, enabling the creation of smart contracts and decentralized applications (dApps). It aims to provide a high-performance foundation for decentralized finance (DeFi) and other blockchain-based products.
How does Binance support blockchain startups?
Through Binance Labs, its investment and incubation arm, it provides funding, mentorship, and technical support to early-stage projects. It also offers a launchpad for token sales and helps projects build and grow within its ecosystem.
What distinguishes Binance from other major exchanges?
Binance is often noted for its rapid pace of innovation, extensive product ecosystem that goes beyond trading, aggressive global expansion strategy, and significant investments in acquiring and integrating other companies to build a comprehensive blockchain infrastructure.
Looking Ahead: A Future Without Boundaries
As the Chinese aphorism goes, "If one does not consider the long term, one cannot plan for the immediate; if one does not consider the whole, one cannot plan for a part." At three years old, Binance has not set limits on its future. From the beginning, it has planned for the entire chessboard, and its future vision encompasses the entire domain of the digital economy.
Co-founder He Yi envisions Binance as an ecological company, constantly expanding outward. In the internet realm, it's said that application companies are worth billions, platform companies tens of billions, and ecological companies hundreds of billions. A company's strength comes not from adaptability alone but from its capacity for expansion.
CZ aims for Binance to serve as the underlying liquidity and infrastructure provider for the entire digital currency industry, often operating invisibly in the background as a fundamental tool for others.
In his third-anniversary letter, CZ outlined future plans: introducing more fiat channels, continuing collaboration with global regulators to accelerate crypto adoption, and investing in projects to foster ecosystem growth.
Most notably, Binance China will continue its合规 approach, promoting the integration of blockchain technology with traditional industries. Its "Spark Initiative" plans to provide comprehensive support—funding, technology, and talent—to 1,000 Chinese digital technology companies over the next two years, integrating global resources to foster industrial blockchain development and create a cohesive Chinese blockchain technology community.
Serving the global blockchain industry and promoting its holistic development is both Binance’s three-year achievement and its vow for the future. What lies ahead for Binance is not a sprint, but a marathon.