Who is behind the world’s largest cryptocurrency exchanges?
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Today, cryptocurrencies are probably not unfamiliar to everyone. Especially investors. Capturing the essential needs of crypto investors. Exchanges, cryptocurrency trading platforms were formed. In the past few years. The cryptocurrency market has grown and become a force compared to the traditional economy.
The business of exchanges is very simple. They charge a commission when customers trade cryptocurrencies. However, the key to success is the trust of customers for the exchange. Exchanges do not hesitate to spend large amounts of money to promote their names. Some of the largest cryptocurrency exchanges in the world have been listed on the stock exchange. Other exchanges become sponsors of top basketball or football tournaments in the continent. Even the leaders or founders of exchanges are among the richest people in the world. So who are they? The people behind the biggest cryptocurrency exchanges in the world.
Coinbase: the world’s first cryptocurrency company.
Launched in 2012, Coinbase aims to be likened to the PayPal of cryptocurrency. It is currently the largest cryptocurrency exchange in the US. A few months ago this company was listed on the stock exchange and recorded an initial record increase. Coinbase also became the first company in the cryptocurrency and Bitcoin ecosystem to be listed. In addition to providing more than 43 million verified users with the ability to purchase cryptocurrencies and store them in their wallets. Coinbase also makes a number of financial tools and services such as the Coinbase Commerce e-commerce service. GDAX Electronic Exchange and Proprietary API Digital Platform…
Coinbase currently offers plugins for online stores to receive payments in crypto, debit cards and is planning to offer credit. In other words, they are becoming something close to Bitcoin banking and its competition is not other platforms like Paypal or Square.
Coinbase was founded in 2012 by Brain Armstrong (Current CEO) and Fred Ehrsam. Before founding Coinbase, Armstrong worked as a software engineer at Airbnb.
Soon after, they were accepted to present their idea at Y Combinator, the world’s most prestigious business accelerator. However, at that time, due to doubts about the platform they wanted to create, they did not successfully raise capital.
Instead, Armstrong was connected with Fred Ehrsam, a former Goldman Sachs banker. A year later, the company was selling one million dollars in Bitcoin per month, and Coinbase started the most profitable business model that still charged commissions for buying and selling operations.
In promotional material submitted to the SEC, Coinbase assures that its earnings increased by 139% last year, to $1,277.7 million, with a net profit of 322.3 million. It’s a super profitable business.
Over the course of the past nine years, Coinbase has received over $500 million in funding rounds from investors such as Andreessen Horowitz, Initialized Capital, Tiger Global, or Spanish bank BBVA.
Binance: The World’s Largest Crypto Exchange With Changpeng Zhao, The World’s Largest Crypto Billionaire
Binance is known for being an exchange with its own currency, and they often offer new projects or act as a bridge to invest in them before others.
According to Coinmarketcap, Binance is currently the largest cryptocurrency exchange globally, in terms of the trading volume. Binance was developed in 2017 by two co-founders: Changpeng Zhao and Yi He. Both are former employees of OKCoin, another exchange where they hold executive positions. They left OKCoin to create Binance, a cryptocurrency platform with operations initially located in China, although it is based in the Cayman Islands. The name “Binance” originates from a combination of binary (Binary) and financial (Finance).
To fund their new project, they held fundraising through an ICO in which they offered 100 million Binance Coin (BNB) to investors. Through this event, the platform raised more than $15 million. 35% of the raised funds are used to build the platform and do system upgrades, 50% for marketing, while the remaining 15% is spent to settle leaving a free deposit .
Binance’s native token and ease of use have made the platform rapidly popular with users. In the first six months, it gained three million users. At that time, Changpeng Zhao (nicknamed CZ), who is of Chinese descent but has Canadian citizenship, strategically orientated himself to become a globally known brand, after the Chinese government banned cryptocurrency trading.
Although he has encountered significant thefts and hacks, his popularity has not stopped growing, and with it, the fortune of CZ, considered the largest cryptocurrency billionaire Currently. His fortune is estimated at $96.9 billion and owns 90% of Binance shares.
Crypto.com: From a personal blog to a force in the Crypto industry
Crypto.com became famous after participating in the main sponsoring of the Staples Center, the Los Angeles Lakers Stadium and also acquiring the rights to name this center as Crypto.com Arena. Crypto.com ran a massive advertising campaign with the actor, Matt Damon as the face of it.
Less than four years ago, Crypto.com was the personal blog of a University of Pennsylvania computer science professor. Its roots are a startup called Monaco founded in 2016, a company that offers Visa debit cards that can be recharged with cryptocurrency.
Like many other companies, Crypto raised capital by minting its own digital token and selling it to the public in 2017. The company’s balance sheet hit nearly $200 million by mid-year. 2018, CEO Kris Marszalek told TechCrunch at the time.
Crypto.com is an outstanding crypto exchange with diverse support for a wide range of crypto assets and blockchain-related products. Users can buy, sell and trade multiple currencies and enjoy relatively low transaction fees.
In addition, the company also offers crypto credit cards, decentralized exchanges, independent crypto wallets, and NFT marketplaces. In particular, Crypto.com allows users to staking their cryptocurrency or keep it in the Crypto.com wallet for a certain period of time, to earn interest up to 14.5%.
For those who want to buy and hold Bitcoin and Ethereum, Crypto.com can be a good choice, because the transaction fee on the exchange is always capped at 0.40% and decreases further when there is a block. large transaction volume or high CRO holdings.
Crypto.com Company was established in 2016 in Hong Kong. It is currently offering more than 150 cryptocurrencies to over 10 million customers worldwide. Crypto.com serves users in 90 countries with a unique ecosystem of crypto products.
The goal that Crypto.com has in the past and in the future is to build a good platform for active Traders and anyone interested in using cryptocurrency as a real currency, It’s not just an investment.
Crypto.com is only the ninth-ranked crypto exchange by daily volume, according to CoinMarketCap, but their marketing move with Staple or their advertising with Damon has brought them into the spotlight.
Kraken: the exchange that grew after the biggest crypto scandal
San Francisco-based Kraken is another cryptocurrency exchange and one of the oldest. Founded in 2011, it is owned by Payward Inc. and is led by CEO and co-founder Jesse Powell.
Its popularity began to grow when, in 2014, Bloomberg selected Kraken’s indexes along with Coinbase to provide information.
But then came another big milestone. In 2014, the Mt. Gox has caused quite a stir: an exchange that made users shiver after losing 850,000 bitcoins in various attacks. It remains the largest case seen to date. Kraken was chosen to support uninsured users who had to open an account on the platform.
Up until that point, Kraken was not among the largest exchanges, serving mainly European clients through a partnership with Germany-based Fidor Bank.
Today Kraken continues to maintain that good image both at the security level and in the face of regulators.
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