Binance is one of the best known companies in the cryptocurrency space, and ever since its inception in 2017 has rapidly went from strength to strength, taking in nearly half a billion dollars in pure profit during the bear market of 2018. This has made the CEO, Changpeng ‘CZ’ Zhao, an extremely wealthy person, with his net worth being estimated at $1.4 billion. Not bad considering all this has happened for him in the last two years.
One of the many ways Binance expanded to dominate the market was through creating their IEO Launchpad, which is the most successful IEO platform of any cryptocurrency exchange. CZ himself is one of the most popular figures in the world of cryptocurrency, having nearly half a million followers, and regularly engaging with the community in positive ways.
Now, moving forward yet again and diversifying their business offerings – Binance has launched a cryptocurrency lending wing of their business. which may well turn out to be one of the leading crypto lending platforms.
The rise of crypto lending has been swift, for example the lending firm Celsius has seen a 2000% increase in deposits recently. There has also been an explosion in the amount of companies offering this service, with notable companies being BlockFi, EthLend, and Nexo.
Binance launches 3 key assets for lending
Binance is initially allowing lending of three key assets now that its platform is live. These are, of course, their native token BNB, the most popular stablecoin USDT, and ETC. One of the key promises of this project is the high rate of annual return. Binance has started off with a 7% annual rate of return for ETC, a 10% return on USDT, and a massive 15% return on BNB. It’s clear to see that Binance is favouring the use of lending through their own token – which is a wise move which could propel the currency into even higher gains.
The total cap which available for initial lending on the platform was 200,000 BNB, 10,000,000 USDT, and 20,000 ETC. In 16 seconds their BNB was taken by 502 users, in 3 minutes 24 seconds USDT sold out to 306 participants, and in 9 minutes 48 seconds their ETC was taken up by 124 users.
The future of Binance
The company will be regularly reviewing the processes and which coins could be eligible for lending services. Wisely, they’re only starting with three currencies to test the waters, but over time it’s highly likely that they will add many more tokens to their platform. Knowing Binance, CZ and the team have a plan for world domination with this project. With the massive popularity of the Binance exchange, having an estimated 13-15 million users, the awareness and popularity of the lending project is likely to be huge when compared to other companies offering similar services, which have to pay huge amounts for external marketing.
The lending project isn’t the only way in which Binance has recently grown and diversified its business offerings – it’s been announced recently that the company will be launching Futures options, and they’ve also recently launched a margin trading program. With everything Binance is doing, it’s a wonder what they’ll be announcing next. I’m sure we’re all looking forward to what CZ and the team have up their sleeves.