I'm on a total Binance kick right now. I can't get over how awesome this exchange is. I never realized how good it was until I started making accounts at several different exchanges. They've even posted 200 million dollar profits in their second quarter alone. That's pretty insane for a company that just started up in 2017.

I have a lot of theories about this company that may or may not be true.

Binance regulates their own coin.

If you look at BNB it's the only coin that has broken away from the traditional pump and dump pattern of literally every other coin.

This leads me to believe that Binance is regulating their own coin to some extent. They certainly have the money to do so. Imagine if you had a good idea of how much your coin should be worth over time. If you guessed correctly you could regulate your own coin while making money doing it. To me it looks like BNB is going up around $1 every month... what a highly suspect number.

The founder of Binance, Changpeng Zhao, has a net worth of 1.39 billion. He alone could easily regulate the value of BNB if he wanted to. The value of doing such a thing is blatantly obvious. Not only can you make money by buying low and selling high, you can also create the appearance of a stable coin that actually goes up in value over time. This dynamic would in turn bring investors from all over the world willing to invest and hold BNB coin. But what stops BNB from getting pumped too high?

BNB is paired to 70 other coins! When I click my favorites tab this is what I see today:

I just recently decided to stake more of my investment into BNB and it has not disappointed. BNB has gone up 8% today while everything else has remained flat. Seeing red on the BNB tab is great for BNB holders. It means you can buy your favorite coins with BNB at a discount. This is what keeps the price of BNB from pumping too fast (that and like i said Binance is probably helping).

Conversely, when you see green it means you can buy BNB with your favorite coins at a discount. It's quite an elegant symbiotic relationship. I haven't even mentioned yet about cutting fees in half or being able to cast stake weighed votes. Also, lets not forget Binance Chain.

Binance is decentralizing

Just like EOS started out as an ERC-20 token and started it's own blockchain, so will BNB. Binance Chain is going to be a decentralized exchange where almost any coin will be able to be traded on a peer-to-peer network.

https://www.bloomberg.com/news/articles/2018-06-12/blockchains-talking-to-each-other-gives-hope-to-crypto-diehards

Once the platform is live, Binance’s cryptocurrency, which is called Binance Coin and is based on the Ethereum platform, will be swapped one-to-one with a new coin based on its own blockchain, Zhao said.

This sounds like it could be an airdrop. Could BNB ERC-20 tokens actually retain some value after this transition? Perhaps not but that hardly matters because a move like this is surely to increase the value of BNB even more.

“On the decentralized exchange we’ll have less control. More likely anybody can list any coin. That’s the philosophy of the decentralized exchange, it’s freedom of choice, freedom of investments,” Zhao said in an interview over Skype. “But with freedom there will be people who are scammers. That’s not something we can control.”

In addition to this new decentralized platform, I believe that Binance itself strives to incorporate decentralization tactics within it's centralized ecosystem to fight against hackers. Just look at what happens when you try to deposit Steem into your Binance account:

First of all, you can get Steem into your account in three seconds... bad ass. I have to wait 10 minutes for Litecoin (4 blocks with an average of 2.5 min). Second of all, take a look at account @deepcrypto8. Yeah! That account is only worth $10,000 right now. This is not a prime target for a hacker and Binance knows it. I would really love for everyone that has a Binance account to check which account you have to send money to and post it in the comments. Free upvote for anyone that does.

This implies that Binance is using decentralization tactics so even if they get hacked it won't be a huge devastating hack. In fact, I wouldn't be surprised if they've been hacked multiple times but they simply cover it up by using their profits to refund the hacked accounts. Small hacks are meaningless to huge exchanges. Better to take one for the team than admit that your platform can be compromised.

Know-Your-Customer (KYC)

Binance allows anonymous accounts to withdraw up to 2 Bitcoins per day without verifying their identity. To me, this is one of the best things about Binance. They don't needlessly invade your privacy. I would even argue that maybe 2 Bitcoin a day is too big a limit. That's currently over $12,000 a day... pretty crazy.

Fiat to crypto

Their policy of 2 Bitcoin a day will not be so lenient once they add fiat to crypto pairs. It's very obvious that this is where the establishment is most concerned with regulation; bottle-necking at the entry and exit points. Still, there are Bitcoin ATMs, and if projects like Dether take off there will be decentralized craigslist-like ways to turn cash to crypto and vice versa. This industry is on the verge of exploding, that's why when I hear talk about a bubble I just chuckle to myself. We haven't even gotten started.

Other Exchanges not as good as Binance

Coinbase

Great exchange. No fees for makers or cashing out. Advantage: Fiat/Crypto pairs are already in effect. Disadvantage: KYC regulation and reports top accounts to the IRS by law.

Kucoin

Binance's sad younger brother. Advantage: I use this exchange because it has coins that I want that aren't on Binance: Digibyte, DeepBrain Chain, Dragonchain, Electroneum, and Dent.

Disadvantage: Site is very clearly based in Hong Kong. Localized translation to English is blatantly poor. I assume support is worse. The advantage of holding Kucoin Shares is insulting compared to BNB. The fee reduction is much worse.

BitFinex and EthFinex

Banned in USA (doh)

ShapeShift

Bad ass way of pseudo-anonymously transferring one crypto for another. Advantage: Anonymity (you literally can't even make an account) Disadvantage: Only 36 coins currently listed and a flat fee makes small transactions heavily taxed.

Bittrex

Coinbase's happy younger brother.
Disadvantage: KYC constraints with less coins than Binance. Advantage: Many more coins than Coinbase with fiat to crypto pairs.

HitBTC and Liqui.IO

Why are you even here? Disadvantage: Rampant claims of abuse from market manipulation to outright theft and terrible customer service. Websites are "busy" and convoluted. Zero guarantees. Advantage: ??? Diversity?

Conclusion

I still want to take a look at CobinHood and their zero fees platform, but you get the idea. Binance is the best.

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