What to know:
- CZ says Binance’s market share comes from protecting users, from 2017 reimbursements to $700M after the Oct 2025 crash.
- 300M users, 41% spot share in mid-2025, and $152.9B in reserves holding 73.5% of top CEX reserves.
- After its $4.3B settlement, Binance is betting compliance and reserve depth matter more than volume.
Binance founder Changpeng Zhao, or CZ as he is commonly known, rephrased the issue of dominating the exchange by suggesting market share is simply a product of protecting users. His statement comes at a time when people have been questioning Binance’s stability and the company having to pay $700 million for the flash crash of October 2025.
Defending User Protection
To begin with, CZ pointed out on publicly shared posts that there were negative reviews of Binance following system glitches during the market volatility of October 10, 2025, that caused liquidations. CZ defended Binance, stating that it has always been their primary concern to safeguard the interests of their users.
He drew from the example of the 2017 reimbursement where the exchange refunded users a total of $6 million after China’s ban on cryptocurrencies. The company disclosed that it earmarked $283 million for addressing de-pegging losses, put aside $400 million for futures and institutional clients, and $45 million to memecoin traders, respectively.
Also Read: Binance Bitcoin Reserves Climb to Six-Month High of 667,500 BTC
Market Share Gained from User Protection
Why Binance ended up having more than 300 million registered users with a spot market share of 41.14% in June 2025 was based on The Block’s report as they said that it was the highest for over the months period.
Source: PYMNTS
At first quarter of 2026, coinGlass records show that user reserves amounted to $152.9 billion, which is a 73.5% portion of the big centralized exchanges, and there was a derivative trade volume of $4.9 trillion.Reserve depth and quick withdrawal are two major factors for both retail and institutional traders that indicate a system’s strength.
Also Read: US Treasury Sanctions Iranian Crypto Exchanges Over Alleged IRGC Links
The Broader Perspective and the Industry Changes Taking Place
This kind of approach is actually in line with a much bigger change which came after Binance paid a huge $4.3 billion settlement to The State in 2023 to focus on not making money at the expense of customers but on survival eventually and compliance too.
Source: Reuters
With the emergence of regulations (like the) GENIUS Act and stablecoins going above $311 billion trust is still the most scarce resource for exchanges, depositaries, and trading centers.
Also Read: OKX vs CZ: Explosive Clash Over Hyperliquid Compliance 2026
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