First1000: How Binance Acquired Its First 1000 Users

In this edition of First1000, we explore how Binance, now the largest cryptocurrency exchange in the world, secured its first 1000 users. Binance's early journey is a story of innovation, timing, and an unwavering commitment to the needs of its users in the fast-growing world of cryptocurrency trading.

The Founding Story of Binance

Binance was founded in 2017 by Changpeng Zhao (CZ), a Chinese-Canadian entrepreneur with a background in finance and trading systems. Before founding Binance, CZ had worked on high-frequency trading systems and had a stint as CTO of OKCoin, a major cryptocurrency exchange at the time. His deep knowledge of the financial markets and blockchain technology, combined with his entrepreneurial drive, set the stage for the creation of a game-changing platform in the cryptocurrency space.

The idea for Binance was born from CZ’s realization that there was a gap in the market for a fast, secure, and user-friendly exchange with low fees. Cryptocurrency trading was rapidly growing in popularity, but many exchanges had slow transaction speeds, complex user interfaces, and high fees. CZ saw an opportunity to create a new type of exchange that would address these pain points and appeal to both novice and professional traders.

Binance launched in July 2017 through an Initial Coin Offering (ICO), raising $15 million in just two weeks. The funds were used to develop the platform and its native token, Binance Coin (BNB), which would later play a key role in driving user acquisition.

Ingenious Tactics to Acquire the First 1000 Users

Binance’s rapid rise and early success can be attributed to several strategic moves and CZ’s deep understanding of the cryptocurrency market. Here's how they acquired their first 1000 users:

1. Initial Coin Offering (ICO) and BNB Utility: Binance’s ICO played a critical role in its early growth. The ICO not only provided funding but also attracted early adopters who were eager to see the platform succeed. Binance incentivized users to buy and hold Binance Coin (BNB) by offering discounts on trading fees when transactions were made using BNB. This fee reduction model appealed to traders looking to minimize costs, driving a wave of early user sign-ups.
2. Focusing on Speed and User Experience: From the start, Binance differentiated itself by offering an extremely fast trading engine, capable of processing 1.4 million transactions per second. This gave it a significant edge over competitors and attracted traders who valued quick execution. The platform also featured a clean and intuitive user interface, making it accessible to both professional traders and newcomers alike.
3. Wide Range of Cryptocurrency Listings: Binance quickly became known for listing a wide variety of cryptocurrencies, including many lesser-known altcoins. This appealed to early crypto enthusiasts who were eager to trade coins that weren’t available on other platforms. By giving users access to more markets and newer tokens, Binance attracted a diverse group of early adopters.
4. Community Engagement and Growth Hacking: CZ and the Binance team actively engaged with the cryptocurrency community through forums, social media, and Telegram groups. They listened to user feedback and implemented requested features quickly, fostering loyalty among early users. The community-driven approach created a sense of ownership among Binance users, further accelerating its growth.
5. Global Outreach and Multilingual Support: Recognizing the global nature of cryptocurrency trading, Binance quickly rolled out support for multiple languages and targeted users in international markets. This allowed them to acquire users not only from the United States and Europe but also from Asia, Latin America, and other emerging regions where cryptocurrency adoption was growing.

With these strategies, Binance managed to acquire its first 1000 users in a matter of days. The combination of fast execution, low fees, a broad range of coins, and strong community engagement set the stage for rapid scaling.

Binance Today

Today, Binance is the largest cryptocurrency exchange in the world by trading volume, processing over $50 billion in daily transactions. The platform has expanded its offerings to include a wide range of financial services such as staking, futures trading, and decentralized finance (DeFi). Binance Coin (BNB), the native cryptocurrency, has grown to be one of the top cryptocurrencies by market cap, and the exchange has launched various initiatives like Binance Smart Chain.

As of 2024, Binance remains privately held but has been involved in high-profile acquisitions and investments in the blockchain ecosystem. Its influence on the cryptocurrency market continues to grow, positioning CZ as one of the most important figures in the industry.

What is First1000?

First1000 is a series that explores the stories of how iconic companies across industries acquired their first 1000 users. We highlight the strategies, creativity, and challenges that paved the way for their success, offering valuable lessons for entrepreneurs and startups.