Author: JuCoin
On January 12, 2009, Satoshi Nakamoto sent 10 Bitcoins to cryptographer Hal Finney, kicking off the revolution of crypto assets. From programmers exchanging 10,000 Bitcoins for two pizzas to the Abu Dhabi sovereign wealth fund MGX investing $2 billion in Binance in March 2025, and the rumor of the Trump family investing in Binance.US through World Liberty Financial (WLF) (although denied), crypto exchanges have evolved from technical experiments to national strategic tools in 15 years. This is not only a history of technological and market evolution, but also a global game of capital, power, and regulation. This article will review the development trajectory of exchanges and analyze how sovereign capital and political forces are reshaping the industry landscape.
Chapter 1 The Formative Era: The Chaotic Beginnings of the Underground Underworld (2009-2013)
1.1 Pizza Transaction and Value Awakening
On May 22, 2010, programmer Laszlo Hanyecz used 10,000 Bitcoins to purchase two pizzas (currently worth about $10 billion), first giving Bitcoin real-world value. At the time, transactions often relied on the Bitcointalk forum and were completed peer-to-peer through PayPal. In October of the same year, the "New Liberty Standard" priced mining electricity (1 USD = 1,309.03 BTC), giving birth to Bitcoin Market - the first Bitcoin trading platform. However, fraud was rampant, and in June 2011 PayPal withdrew support due to user complaints, causing the platform to shut down and exposing the fragility of centralized custody.
1.2 The Rise and Fall of the Mt.Gox Empire
In July 2010, Jed McCaleb founded Mt.Gox, which was acquired by Mark Karpelès for $120,000 in March 2011. At its peak, it accounted for 80% of global trading volume:
l June 2011: First hacker attack, losing 2,000 Bitcoins
l February 2013: Monthly trading volume exceeded 1 million Bitcoins
l February 2014: 850,000 Bitcoins stolen (about $450 million), leading to the platform's collapse
The collapse of Mt.Gox sounded the security alarm and paved the way for the rise of subsequent exchanges (such as Coinbase and BTCC).
1.3 Chinese Power and Early Exploration
In June 2011, China's first Bitcoin exchange BTCC went online, quickly rising to prominence thanks to cheap electricity and a large user base:
l November 2013: Bitcoin price rose from around $13 at the beginning of the year to $1,242, with China accounting for about 60% of global trading volume (Chainalysis estimate)
l March 2014: The central bank banned financial institutions from handling Bitcoin, marking the initial appearance of regulatory storms
During this period, JuCoin, as an emerging platform, quietly started up, launching services in Asia in 2013, attracting early users with low trading fees and multi-language support, and laying the foundation for technical optimization and community building, although not as renowned as BTCC.
Chapter 2 Rapid Growth: The Derivatives Revolution and Regulatory Crackdown (2014-2020)
2.1 The Contract Era of BitMEX
In 2014, Arthur Hayes founded BitMEX in Hong Kong and launched perpetual contracts:
l 2016: BTC/USD perpetual contract launched, pioneering the funding rate mechanism
l 2018: Daily trading volume exceeded $10 billion
l 2020: The CFTC accused it of illegal operations, and the founders were arrested
BitMEX drove trading volume growth through high leverage, but was forced to withdraw from the US market for failing to comply with regulations, highlighting the importance of compliance.
2.2 The Regulatory Divergence between China and the US
In September 2017, China banned ICOs and exchange operations, leading Huobi and OKEx to expand overseas. Meanwhile, the US built a compliance framework:
l 2018: New York's BitLicense only benefited a few platforms like Gemini and Coinbase
l 2019: The SEC cracked down on ICOs, and Telegram returned $1.7 billion
l 2020: The CFTC approved Bitcoin futures, accelerating institutional participation
During this period, JuCoin chose to develop quietly, focusing on the Southeast Asian market, optimizing the mobile trading experience, and avoiding the regulatory storms in China and the US.
2.3 Binance's Global Hegemony
In July 2017, CZ founded Binance, quickly rising to prominence with its low-fee and rapid listing strategy:
2018: Launched a matching engine capable of 140 million transactions per second
2020: Average daily trading volume exceeded $30 billion, surpassing Mt.Gox's historical peak
Binance's success marked the transition of exchanges from regional competition to globalization.
Chapter 3 Restructuring Order: The Injection of Sovereign Capital and Political Power (2021-2025)
3.1 Regulatory Iron Curtain and Compliance Transformation
Starting in 2021, SEC Chairman Gary Gensler launched a regulatory wave:
l 2022: Coinbase was fined $50 million for failing to register as a securities exchange
l 2023: Binance paid a $4.3 billion fine for anti-money laundering violations
l 2024: The "21st Century Financial Innovation and Technology Act" requires exchanges to maintain a reserve ratio above 100%
Coinbase, through its IPO (2021, raised $8.6 billion), transformed into a compliance benchmark, while Binance relocated its headquarters to Dubai in search of geopolitical protection. JuCoin, on the other hand, obtained a primary license in Southeast Asia in 2022 and steadily integrated into the compliance wave.
3.2 $2 Billion Investment by MGX
On March 12, 2025, the UAE sovereign wealth fund MGX invested $2 billion in Binance (approximately 2%-5% stake), pushing its valuation to $40-60 billion:
l Background: Binance needs capital to restore market trust after the 2023 fine
l Significance: This investment marks the entry of sovereign capital into the crypto exchange industry, reshaping the global landscape
This investment by MGX in Binance represents the injection of sovereign capital and political forces into the crypto exchange industry, further restructuring the global landscape.
l Meaning: Sovereign capital enters the market, the exchange shifts from startup-driven to institutionalized
l Impact: The UAE consolidates its position as a crypto hub through Binance, challenging US dominance
3.3 The political tentacles of the Trump family
On March 13, 2025, The Wall Street Journal reported that the Trump family plans to invest in Binance.US through WLF, which CZ denied on the same day (X, 13:34 PDT). Although it did not materialize, this rumor reflects the intervention of political forces:
l Background: Trump proposed a Bitcoin reserve policy during his 2024 campaign
l Significance: The exchange uses political endorsement to re-enter restricted markets
Chapter 4 Future Trends: A New Landscape under Sovereign Capital and Political Integration
4.1 Strategic Anchoring of Sovereign Capital
MGX's investment kicks off the sovereign capital boom:
l Trend: More sovereign wealth funds may emulate the MGX model, and exchanges are increasingly integrated into national economic strategies
l Impact: The UAE uses Binance to connect the petrodollar, while the "Coinbase circle" (the US dollar zone) strengthens its financial hegemony
l Outlook: Capital injection will drive up valuations, but geopolitical risks need to be watched
4.2 Compliance-Driven Centralization
Global regulatory pressure (such as the EU's MiCA and the FATF travel rule) eliminates small and medium-sized platforms:
l Indications: The survival pressure on small and medium-sized exchanges will intensify by 2024, and the market share of leading platforms will increase significantly
l Impact: Binance and Coinbase strengthen compliance (such as KYC upgrades), while JuCoin steadily expands through regional licenses
l Outlook: Industry consolidation will intensify, and compliance costs will become a competitive barrier
4.3 Deep Integration of Technology and Business
Technological innovation is reshaping the exchange:
l Trend: CEXs (such as Binance's DeFi wallet and Coinbase Base chain) integrate with DeFi, and NFTs account for 10%-15% of revenue
l Impact: AI enhances security (such as Binance's anomaly detection), and JuCoin also launched an AI trading assistant in 2023 to improve the user experience
l Outlook: Exchanges are transforming from trading platforms to comprehensive ecosystems
4.4 Regional Competition Backed by Nations
Exchanges rely on policy support:
l Trend: The US (Coinbase), the UAE (Binance), and Hong Kong (HashKey) are forming three major spheres of influence
l Impact: JuCoin relies on Southeast Asian policies to connect emerging markets with global capital
l Outlook: A national alliance pattern is taking shape, and exchanges are becoming geopolitical frontiers
Conclusion: From Technological Ideals to Power Convergence
From the pizza transaction to the collapse of Mt.Gox, from the leverage frenzy of BitMEX to Binance's $2 billion investment, and then to the political rumors of the Trump family, the 15-year evolution of crypto exchanges is a story of the interweaving of technology and power. When CZ signed the MGX agreement in Dubai, and when JuCoin quietly optimized its Southeast Asian services, they are not only business entities, but also digital projections of national strategies. In the future, exchanges will differentiate in the integration of sovereign capital and politics: some may become compliant platforms supported by nations, while others may be marginalized. This transformation, which began with the ideal of decentralization, is moving towards a new stage dominated by capital and regulation.
#Trump #WLF # Coinbase #Binance #JuCoin #Mt.Gox #BTC
