It’s the most impressive growth company I’ve ever researched…
It has millions of users… spread out in more than 100 countries.
In the three years since it was created, it’s already passed $1 billion in profit. Not revenue, profit.
I’m talking about Binance (BNB)… now one of the largest cryptocurrency exchanges in the world.
It’s arguably the most successful crypto company. It was deemed to be “hackproof,” with one of the best online security systems in the industry—requiring users to enter more than just a password to access their account.
Unfortunately, it wasn’t enough…
On May 7, hackers stole $40 million in Bitcoin from Binance (BNB). Crypto markets crashed on the news, and nearly every major cryptocurrency traded in the red—including Bitcoin and Ethereum.
But shortly after the announcement, something remarkable happened…
The crypto market quickly bounced back after the hack. The largest cryptocurrencies recouped most of their losses… and some traded higher less than 24 hours later.
In the past, large hacks like this would create uncertainty for long periods.
For example, people pulled money out of the market in 2016 after crypto exchange Bitfinex was hacked for $72 million. The same thing happened in early 2018, after hackers stole $170 million from crypto exchange BitGrail.
In fact, hackers stole $1.7 billion worth of crypto in 2018.
You can understand why investors get nervous every time a major hack occurs. Most fear their money isn’t safe… and they run for the exits.
But after Binance was hacked… CEO Changpeng Zhao (nicknamed “CZ”) got ahead of the problem. He wasted no time explaining the situation to customers.
He also broadcast the news to the world (through numerous media channels), highlighting exactly how the hack happened… how much was stolen… and how the company would temporarily freeze all withdrawals to prevent hackers from stealing anything else.
More importantly, CZ said the $40 million in losses (about 2% of Binance’s total Bitcoin holdings at the time of the hack) would be covered by a special fund set up to secure assets for its users. In other words… every customer who was hacked would get 100% of their money back.
It was also remarkable how the crypto community came together to support Binance.
Many exchanges, including Coinbase, were working together to stop transfers among the hacker addresses. Some individuals in the crypto community also offered to donate money to help cover the losses, although CZ said it wouldn’t be needed.
This is the first time a major hack occurred in the crypto markets where there was total transparency. Binance immediately addressed the problem… protected its customers… and—just one week later—resumed all operations.
For the most part, the crypto market has been driven by individuals spending a few thousand dollars to buy their favorite names. But this is changing… hedge funds and institutional money are now getting into the space, and Bitcoin futures trading is picking up.
The May 7 event instilled confidence in an industry that’s been in dire need of it. Transparency and governance open the door for institutions to invest in the space… driving tens of billions in new capital into this industry in the coming years. It’s a flood of cash that will bring the sector even closer to mainstream acceptance.
If you’re sitting on the sidelines of this market, don’t miss out… Consider getting some exposure today.
|Frank Curzio with Daniel Creech|
Editor’s note: Our Crypto Intelligence members are on the front lines of the best ideas in the crypto market. And Frank’s latest idea—one of the world’s best tech startups—was released yesterday to subscribers.
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