MGT604 Strategic Management
战略管理网课代修 Its target customer would be anyone holding and trading crypto assets from coins to NFCs. And because of its wide service
Binance is a crypto trading company funded in 2017, and its initial business started in China. The main business model for Binance is running online crypto trading platforms and gaining various incomes associated with the platform such as trading fees and withdrawal fees. As well as financial income such as margin interest and futures trading fees. The company also issues its own crypto. The BNB and it also invested in various cryptos thus its revenue stream also consists of those investing income.
Crypto, being a volatile method of investing. 战略管理网课代修
The trading of these assets involves huge uncertainty not only due to its volatility but also due to the fact that politically, not all countries allow such a financial instrument to be traded. Thus, The companies in this field are exposed to external political and environmental risks as well as the financial market volatility risks.
Binance was performing well in past years by registering the company in the Cayman Islands to avoid certain political issues as well as moving away from the Chinese and the USA market to follow government regulations. It has been performing well up until the recently happened price plunge overall cryptocurrencies. Before that event, Binance was able to maintain 4.5 thousand employees and its cryptocurrency, the BNB, was growing strong until the end of 2021.
According to Binance’s website.
Its vision is to increase the freedom of money globally and its mission is to be the infrastructure services provided for the blockchain ecosystem. Thus, the value proposition of the company would be to provide necessary trading functions for blockchain traders, including the trading capability of NFCs.
Its target customer would be anyone holding and trading crypto assets from coins to NFCs. And because of its wide service offered there are serval subgroups of those target customers. For example, for risk-taking customers. There is future and margin service as trading options. And for purely NFC traders there is the NFC trading platform. Also, it offers market information to the general public. Thus a certain group of people interested in crypto without holding or trading any can also gain information from Binance’s website. 战略管理网课代修
However, since the beginning of 2022. 战略管理网课代修
The crypto price has been plunging with both the external instability in world economies and politics. As well as incidents inside the crypto community such as the collapse of the LUNA chain. Since the business model on Binance includes both functioning as trading platforms as well as holding crypto assets. The lowered value of cryptocurrencies will both affect the transaction and financing income it will gain as a platform as well as the assets it is currently holding on hand. Similar companies in the industry such as Coinbase, Cypto.com. And BlockFi (Venugopal, S., 2022) have already started laying off employees to reduce financial burden.
Claiming people as their major asset. Binance on the other hand has started massive hiring of 2000 more employees (Venugopal, S., 2022). Thus, it seems that the company’s prospect for the future is still positive and it seems to focus on utilizing the talents flowing into the market due to other competitors’ downsizing to strengthen its employee base.
Reference:
Venugopal, S., 2022. Binance to hire 2,000 employees even as other crypto exchanges cut jobs. Retrieved from https://www.thehindu.com/sci-tech/technology/binance-to-hire-2000-employees-even-as-other-crypto-exchanges-cut-jobs/article65532862.ece at June 19, 2022.
Summary: 战略管理网课代修
Binance is a company operating crypto trading platform as well as investing in crypton assets. Recent volatility in crypto price has affected the company both on trading volume on the platform and on the asset held by the company. Other than competitors who started to laying off people. Binance’s strategy is to hire more people with a seemingly positive attitude towards the future market.
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