Binance Exchange

                                            www.binance.com

 

Intro 

Problems

Binance Exchange

• Matching Engine
• Feature Rollout
• Coins
• Device Coverage
• Multilingual Support
• UI Preview
• Revenue Model

Binance Coin (BNB)

• Allocation
• ICO
• ICO Schedule
• BNB Value & Repurchasing Plan
• BNB Vesting Plan for the Team
• Funds Usage 

Team  

• Changpeng Zhao - CEO
• Roger Wang - CTO
• James Hofbauer - Chief Architect
• Paul Jankunas - VP of Engineering
• Allan Yan - Product Director
• Sunny Li - Operations Director
• Investors & Advisors 

Risks

• Security is Paramount  
• Market Competition

Intro

In our view, there are fundamentally two different types of exchanges: the ones that

deal with fiat currency; and the ones that deal purely in crypto. It is the latter one that

we will focus on. Even though they are small now, we strongly believe that pure

crypto exchanges will be bigger, many times bigger, than fiat based exchanges in the

near future. They will play an ever more important role in world finance and we call

this new paradigm Binance​; Binary Finance.

With your help, Binance will build a world-class crypto exchange, powering the future

of crypto finance.

Problems

Some of the current crypto exchanges suffer from a number of problems:

● Poor technical architecture

Many exchanges are “put together quickly”, by good tech people, but who

have little or no experience in finance or in operating an exchange. They often

choose the simplest approach to get the system up and running. While this

may work well in the beginning, as traffic grows, the system will not able to

handle the increased load. Exchange systems need to be engineered from

the ground up with security, efficiency, speed, and scalability in mind. This

often slows down the initial development, but is critical for long-term success.

Our team has decades of combined experience building and maintaining

world class financial systems that shape the economy. We understand how

these systems are built from the ground up.

● Insecure platform

There are hundreds of exchanges that went down due to being hacked 1 .

Binance is built to high standards, audited, and penetration tested. We have

experience building financial systems to the highest security standards and

strive to ensure security first.

● Poor market liquidity

Professional traders and normal users are significantly affected by this.

Having a shallow orderbook means high slippage when trading, which is very

expensive for traders. Getting miners, institutional investors and large traders

into a new exchange is a chicken and egg problem, and requires a team with

deep industry resources.

Binance’s team have been in both the finance and crypto industry for many

years. The team has worked on and operated a number of exchanges, and

have accumulated a large network of partners in this space. These partners

will be key in bootstrapping the exchange. 

● Poor customer service

Traders are a different breed when it comes to users. Understanding the

trader mentality is vital for running a successful exchange. Money is literally

on-the-line. Many exchanges service traders as if they were running a social

media site. A 3-second delay in seeing your friends’ status update would

hardly be noticed, but on an exchange, the same would be unacceptable,

resulting in a torrent of user complaints.

In additional to the technology stack, Binance is built with service in mind.

Binance shares support responsibilities across the entire staff and company.

When a trader has a problem, they get an answer directly from someone who

knows the system and not someone reading from a script.

● Poor internationalization and language support

Blockchains have no borders. Most exchanges focus only on one language

or one country.

Our international multi-lingual team has extensive working experience in

North America, Europe and Asia, and we are able to smoothly support the

global market. 

Binance Exchange

Matching Engine

Our matching engine is capable of sustaining 1,400,000 orders / second, making

Binance one of the fastest exchanges in the market today. You can be certain, on

our exchange, that your orders will never be stuck due to the matching engine being

overwhelmed.

Feature Rollout

We will roll out the platform in roughly the following order:

● Spot trading

● Margin trading

● Futures

● Anonymous instant exchange

● Decentralized (on-chain) exchange

● and more…Coins 

Binance will support trading pairs in the following coins:

● BTC

● ETH

● LTC

● NEO (ANS)

● BNB (Binance Coin)

More coins will be added over time. We generally will only add coins that have

strong credibility, user base, and liquidity. If you have a coin that you wish to be

listed on Binance later, participating in our ICO will help.

We have no plans to support any fiat currencies such as USD, RMB, JPY, or KRX.

Device Coverage

We will provide cross-platform trading clients for:

● Web-based trading client

● Android native client

● iOS native client (pending App Store review)

● Mobile HTML5 client (including WeChat H5 client)

● PC (Windows) native client

● REST API

Multilingual Support

We will support English, Chinese，Japanese and Korean on all of our user

interfaces. (The very initial release will be in English and Chinese only.) More

languages will be added over time.

UI Preview

 Professional Web Trading Interface

 

 

                                                  Windows PC Native Client - Multi-Interval View

Revenue Model

Binance’s revenue will come from the following sources:

 Binance Coin (BNB)

We will issue our token coin, called the Binance Coin. A strict limit of 200MM BNB

will be created, never to be increased. BNB will run natively on the Ethereum

blockchain with ERC 20.

Allocation 

ICO

The ICO will be done in BTC and ETH, on multiple platforms around the world.

 

ICO Schedule 

All times below are China Standard Time (CST), UTC+8 hours.

 

ICO will start from 3PM July 1st, investors can purchase BNB tokens in 3

phases on a first-come, first-served basis until 100,000,000 tokens are sold.

As each new phase starts, the price will increase.

Investors will receive BNB tokens within 5 working days after the ICO finishes.

The detailed schedule is as below:

 

 

BNB Value & Repurchasing Plan

You can use BNB to pay for any fees on our platform, including but not limited to:

● Exchange fees

● Withdraw fees

● Listing fees

● Any other fee 

When you use BNB to pay for fees, you will receive a significant discount:

 

Repurchasing plan

Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until

we buy 50% of all the BNB (100MM) back. All buy-back transactions will be

announced on the blockchain. We eventually will destroy 100MM BNB, leaving

100MM BNB remaining.

Decentralized Exchange

In the future, Binance will build a decentralized exchange, where BNB will be used as

one of the key base assets as well as gas to be spent.

BNB Vesting Plan for the Team

Funds Usage

● 35% of the funds will be used to build the Binance platform and perform

upgrades to the system, which includes team recruiting, training, and the

development budget.

● 50% will be used for Binance branding and marketing, including continuous

promotion and education of Binance and blockchain innovations in industry

mediums. A sufficient budget for various advertisement activities, to help

Binance become popular among investors, and to attract active users to the

platform.

● 15% will be kept in reserve to cope with any emergency or unexpected

situation that might come up

Team

We have a solid team led by Changpeng Zhao, with both traditional wall street

finance and cryptocurrency experience. We have a track record of successful

startups under our belt.

Changpeng Zhao - CEO

(aka CZ in the crypto community) LinkedIn Profile

As soon as the Binance ICO finishes, CZ will remain a shareholder of BijieTech, but

will relinquish all of his management duties to a new CEO. CZ will focus exclusively

on Binance. This applies to all BijieTech members listed in this whitepaper.

Prior to BijieTech, CZ was the co-founder and CTO of OKCoin. During his stay

there, OKCoin launched their international site, and their futures trading platform.

Co-ordinating with Stefan Thomas, CZ also lead the first proof-of-reserves in any

China crypto exchange. Most other major exchanges in China followed soon after.

In addition to managing the tech team there, he also lead the international marketing

team. He is still mentor to and good friends with Zane Tackett.

 

Before OKCoin, CZ was the Head of Technology and the 3rd person to join the

Blockchain.info team. He worked closely with Ben Reeves, Roger Ver, Anthony

Antonopoulos and Nicolas Cary to grow the Blockchain.info service.

 

Before Blockchain.info, CZ co-founded Fusion Systems Ltd in 2005, a company that

specializes in ultra-low-latency trading systems for brokers. Fusion Systems was

started in Shanghai, and currently has offices in Tokyo, Hong Kong, and Los

Angeles. Among other tasks, CZ was responsible closing and deploying trading

systems at Credit Suisse, Goldman Sachs, Deutsche Bank, and more. CZ left

Fusion System to work full time in the blockchain industry in 2013.

 

Before Fusion Systems, CZ was the Head of Development at Bloomberg Tradebook

Futures for 4 years, in New York. There CZ managed a team that was responsible

for the entire futures trading platform in Bloomberg, with annual revenues exceeding

$300 million USD.

 

Prior to Bloomberg, CZ’s college internship and first job out of college was in Tokyo,

working for a tech outsource company that was involved in developing trading

systems for the Tokyo Stock Exchange. This is where his exchange experience

began.

 

CZ was born in China and went to high school and college in Canada. CZ is fully

bilingual in English and Chinese, and can speak basic Japanese.

Roger Wang - CTO 

Before Nomura, he was a tech leader in Morgan Stanley, where he designed and

built a financial TB level data warehouse, which supported a large number of users to

do real time data analysis and financial modeling. He was also a core developer for

low latency algorithmic trading systems, which served the firm’s largest clients like

Blackstone and Wellington Fund, that delivered significant commission income for

Morgan StanleyRoger is fully trilingual in English, Chinese and Japanese 

James Hofbauer - Chief Architect

Before Palantir, James worked at Fusion Systems. A notable project James worked

on was a global investment bank's systems architecture redesign, focusing on

reducing the number of systems, encrypting and securely handling sensitive data,

and introduced a new user security system which provides authentication,

authorization, and action audit logging.

James was raised and educated in America, earning a Bachelor’s of Science, Cum

Laude, in Computer Science. He is bilingual, native in English and fluent in Japanese

(JLPT N2 certified), and has lived in Japan for over 10 years.

James has known CZ for 7 years and they have worked in two startups together. 

Paul Jankunas - VP of Engineering

 

Prior to BijieTech, Paul worked at SBI BITS, part of SBI Group, in Tokyo. SBI Group

is a listed financial services company with interests in a wide assortment of

businesses. Paul was responsible for both client and server side development for

trading applications.

Before that, Paul worked at Fusions Systems in Tokyo as the Head of Development

on Raptor, a market gateway with latencies under 2 microseconds, and before that

for Bloomberg in New York.

Paul has known CZ for 9 years and they have worked together in 3 companies.

Allan Yan - Product Director

 

Before BijieTech, Allan worked in Orient International Holding,

which is one of the biggest import & export firms in Shanghai. He was responsible for

the implementation of several informationization products, including ERP and e-Fax.

Meanwhile, he led a variety of game and VOD content platforms.

Sunny Li - Operations Director

Investors & Advisors

 

Risks

There are many risks involved in running an exchange. We understand this and have

the skills, experience, and leadership to overcome them.

Security is Paramount

Many crypto exchanges have failed due to poor security procedures. Most security

breaches could have been prevented by taking simple precautions to protect critical

resources. Our team has developed Binance with security as the foremost concern

in their minds. We strive to ensure that we have followed all the industry best

practices when it comes to securing infrastructure and data including ISO/IEC

27001:2013 2 and the CryptoCurrency Security Standard (CCSS) 3 .

Market Competition

We know this will be an ultra competitive space. There are probably hundreds, if not

thousands of teams wanting, planning or doing exchanges. Competition will be fierce.

But in this age, this is a common risk in any decent concept/startup or mature

company. The question is: given our team, track record, experience, industry

resources, and product, do you believe we stand a better chance than the rest of the

pack? If yes, then please join our ICO.