RedNinja39 retweetledi
Let me share a little story on the largest ever single payment from @Binance, the $6m in 2017!
I hope this will help you better understand the #Binance culture.
Binance launched on July 14, 2017, having successfully raised $15m in its ICO two weeks prior.
Less than 6 week later, on Sept 4th, 2017, China issued a ban on crypto exchanges, crypto mining, as well as recommending any ICO projects to return users investments in full should the users want it.
With the announcement, many tokens dropped below their ICO price. BNB dropped from 22x to 6x of its ICO price. Luckily, it was still 6x. So no one wanted to return $6 for $1.
However, four other projects on Binance fell below their ICO prices. The teams behind those projects lacked the funds to fully reimburse their users.
Our team ran some calculations. The gap was about $6 million USD.
The team called me and asked if we should use our own funds to make our users whole, even though those were neither our projects, nor our obligation.
$6m million might not sound like a lot today, but to put it in perspective, we had raised $15 million just eight weeks prior. We were not profitable. We were buying servers and hiring people. We were burning cash.
Giving $6 million to users would deplete our corporate treasury by more than 40%.
I joined the call on a moving train in Tokyo. I asked if anyone had any objections.
No one objected. I said, “let’s do it”.
Percentage wise, that was the single largest transaction in our corporate history.
That announcement immediately received overwhelming responses from the crypto community, not only in China, but around the world.
No other company had protected its users to such an extent, even to this day.
The market rewarded us. Users from around the world joined us. They saw that Binance protected users with not just words, but with action and funds.
When we made the decision to make users whole, we had about 35,000 users. A month later, we had 120,000 users. We became profitable, and have been ever since.
Two months after that, we became the world’s largest crypto exchange, and have been ever since.
Hence our core value: Protect Users!
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