How did Changpeng Zhao become a billionaire?
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Before founding the Binance exchange, Changpeng Zhao – the richest man in the cryptocurrency – worked at McDonald’s fast-food restaurant. Despite his not-so-glamorous background, Changpeng Zhao had entered the ranks of the wealthiest people in the world when he became the boss of the Binance cryptocurrency exchange.
According to Bloomberg, CZ is an influential figure in the UAE. He currently owns an apartment in Dubai and regularly organizes parties near Burj Khalifa to meet the royals in Abu Dhabi who are eager to bring Binance to the country.
Succeeding with Cryptocurrency
The Bloomberg Billionaires Index says Zhao’s net worth is now $96 billion. This number has helped him surpass a series of other names such as Mukesh Ambani, Mark Zuckerberg … But this fortune can be more significant than that if the amount of cryptocurrency of the 44-year-old billionaire is taken into account. In addition to Bitcoin, CZ holds a large amount of Binance coin (BNB), the company’s token. In 2021 alone, the value of BNB has increased by 1,300%.
However, the company’s future depends on relationships with regulatory agencies worldwide and finding a convenient location for headquarters. Even so, Binance is still a successful example of cryptocurrency. According to Bloomberg’s trading fee and volume analysis, Binance’s revenue in 2021 is expected to be around $20 billion.
In the past 24 hours, the exchange’s trading volume at one point reached 170 billion USD. This figure also falls to about $40 billion on the bleakest days, four times more than the previous two-year period. Binance’s crypto market cap is around $2,090 billion. Three years ago, that number stood at about $135 billion.
Changpeng Zhao once sold his house to buy Bitcoin
Zhao is a Canadian citizen but was born in Jiangsu province, China. It was not until CZ was 12 years old that his family moved to Vancouver. He was exposed to technology at a young age and studied computer science. Zhao quickly found work in the financial sector in Tokyo and New York, including four years at Bloomberg LP, the parent company of Bloomberg News.
Zhao’s path to crypto wealth began in Shanghai in 2013. During a poker match with Bobby Lee – then CEO of BTC China, and investor Ron Cao, Zhao was encouraged to invest 10 % of net worth into Bitcoin. After research, he decided to sell the apartment to buy Bitcoin. In 2017, he officially founded Binance.
Binance has become the leading exchange in cryptocurrency. The exchange currently offers more than 350 cryptocurrencies to customers, more than twice as many as Coinbase. Binance has succeeded in creating user engagement by allowing customers to use BNB tokens to reduce transaction fees.
In August, the company announced that all new users must verify their identities and limit withdrawals to non-compliant individuals.
Binance does not currently have an official headquarters. This exchange was founded in China, then moved to Japan and Malta.
Something about Binance Exchange
Binance exchange is the largest derivatives trading provider. Initially, Binance allowed customers to open accounts using email addresses. The exchange focuses on crypto-to-crypto exchanges. In addition, this exchange restricts interactions with traditional banks and state regulatory agencies.
However, to raise money from foreign investors, Zhao needed to change Binance. Investors tend to want the company to have some government oversight to ensure its ability to operate legally. In the UAE, Binance signed an agreement with the Dubai World Trade Center agency to develop a regulatory framework for cryptocurrencies.
Previously, Binance.US, a separately regulated exchange, appointed a former US currency executive as CEO to address regulatory concerns. However, his journey ended quickly when it lasted only three months.
By the end of 2021, Binance continues to seek to raise money from property funds in the US to pursue its IPO goal. The Wall Street Journal reports that former executives could value the company at $300 billion. If the Binance IPO is successful, Zhao will become the wealthiest person in the world, surpassing both Elon Musk and Jeff Bezos.
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