Binance co-founder Zhao Changpeng, serving his first month in prison, has become the wealthiest inmate in U.S. federal prison history as Binance Coin (BNB) reached an all-time high. Concurrently, Binance's user base has hit a milestone of 200 million.
According to CoinGecko, BNB's price peaked at $717.48 on Thursday, boosting its total market capitalization to $109 billion. This marks a doubling in the token's price since the beginning of the year.
Binance User Base Reaches 200 Million, BNB Hits All-Time High
BNB holders benefit from trading fee discounts on Binance, and the token is also used for transaction fees on the BNB Smart Chain. Despite a turbulent period last year, BNB's market dominance has remained robust.
Kaiko analyst Dessislava Aubert noted that BNB's recent surge was foreseeable given the derivatives market conditions from late May. Spot market demand began to rise in June, with consistent buying pressure outpacing selling from June 2 to June 5.
Aubert highlighted that BNB is traded on over a dozen centralized exchanges, distinguishing it from tokens that are predominantly traded on their native platforms. She added that Binance accounts for 85% of the global BNB trading volume.
As BNB's price soared, Binance also set another record in the cryptocurrency industry. Reports indicate that the total user assets under Binance's custody have grown from approximately $80 billion at the start of the year to $125 billion currently. Additionally, the company announced on June 8 that its global user base had reached 200 million.
Cryptocurrency Market Recovery Boosts Binance Trading Volume
On November 21 of last year, under pressure from the U.S. Securities and Exchange Commission, Binance paid a $4.3 billion fine. Zhao Changpeng admitted to violating U.S. anti-money laundering laws, resigned as CEO, and paid a $50 million fine to settle related charges.
However, this settlement had a minimal impact on Zhao's wealth. His net worth is estimated at $38.5 billion, though the specifics of his wealth remain unclear. In a 2021 interview with the Associated Press, Zhao stated that most of his wealth is in BNB and described himself as a "significant shareholder" in Binance.
Bloomberg's Billionaires Index ranks Zhao as the 40th richest person in the world, with his net worth increasing by $4.1 billion in 2024.
While Zhao has never publicly disclosed the exact amount of BNB he holds, the 2017 BNB initial coin offering (ICO) white paper indicates that the founding team received approximately 80 million tokens, now valued at around $56 billion.
