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As the self-proclaimed "World's Leading Cryptocurrency Exchange”, Binance needs no introduction. The blockchain behemoth spans across an entire ecosystem at large, consisting of a multinational exchange, academy, info, labs, launchpad, trust wallet and charity. Binance’s most recent announcement detailing the rollout of their very own white label exchange solution will undoubtedly make waves within the current niche industry of white label exchange service providers. Taking a look at several other companies in this industry which already offer this kind of turnkey solution, it is easy to draw a comparison between Binance’s offering.
A recent Hackernoon article of the Top 50 Cryptocurrency Exchanges for 2020 listed BiKi.com and Bitvo in the Top 10. Both digital asset brokers happen to be serviced by whitelabel exchange solutions. Bitvo is serviced by AlphaPoint and BiKi.com by ChainUP.
So who is AlphaPoint? They are one of the oldest and largest infrastructure providers on the crypto exchange market; in business since 2013. Their products are designed to issue, track, and trade digital assets; providing institutions with enterprise-grade blockchain technology. In the past 3+ years, AlphaPoint offered a crypto exchange solution that could be stood up in less than 20 days but has since modified the offering to “less than 30 days”.
ChainUP is a blockchain technology service provider founded in late 2017 that focuses on providing global digital asset trading systems, liquidity solutions, financial derivative solutions, digital banking solutions, wallet service systems and other blockchain technology solutions. The company prides itself on providing over two years of ”safe operations and maintenance to 300 customers worldwide with zero security incidents."
Binance is most notable for being an exchange that focuses on delivering a professional trading experience to its globally diverse platform users. Their B2C business model is the lifeblood of its operations. Separate from Binance, however, AlphaPoint and ChainUP are both strictly B2B companies; serving crypto-exchanges and other blockchain technology clients.
So what does this mean? For AlphaPoint and ChainUP, their client relationships focus on service of and cooperation with their exchange clients. With their entrance into the white label space, Binance runs a potential risk of creating conflicts of interest.
Binance Cloud offers a matching engine, security controls and liquidity of the Binance exchange platform. Presented as an all-in-one solution, the white label solution promises an easy-to-use dashboard to manage funds, trading pairs and coin listings. It also provides multilingual support and depth-sharing with Binance exchange. In the future, other services that will be rolled out include IEO platform, OTC services and staking.
AlphaPoint Cloud offers a complete digital asset exchange service, AlphaPoint Exchange, accompanied by its automatic market making solutions provider, Remarketer AlphaPoint. Remarketer features an enterprise matching engine focusing on global markets that process millions of transactions per second and do not break or fail under even the heaviest of workloads. Its modular construction increases scaling capabilities, management, compliance and security. Further, it supports integrations amongst various banking infrastructures, payment gateways and fiat currencies.
ChainUP Cloud offers a complete trading system service. This includes spot trading, futures trading, OTC services, leverage trading, fiat trading, IEO support, staking and a liquidity aggregation of 300+ exchanges from right within its ecosystem. The company also includes intelligent market making services, independent derivative liquidity management solutions and wallet system solutions. Its enterprise matching engine reaches millions of transactions per second with built-in disaster recovery that achieves backups in seconds. Its overall technology architecture is highly scalable, extensible and efficient.
What is the takeaway amongst these solutions? Binance’s exchange platform is a superior product in many ways; providing a user interface that traders globally swear by. AlphaPoint has a high fidelity performance architecture engineered to handle enterprise global scaling. ChainUP has a diverse array of valuable services including their novel financial derivative trading platform. While all three provide outstanding products and services, until Binance rolls out the remainder of their white label solutions, the final verdict on the Binance offer is difficult to provide.
You might recall back in August of 2018 when hackers successfully stole 7,000 Bitcoins from Binance; the equivalent to over 40 million dollars (US). The company called the occurrence a “large-scale security breach” which served as a wakeup call for the industry. The BTC was stolen from the exchange’s hot wallet in a transaction that went undetected by the firm’s security systems. The sophisticated attack was reported to use hacking tactics such as phishing and viruses to obtain a large number of 2FA codes and API keys. Fortunately, Binance covered the losses out of its Secure Asset Fund for Users (SAFU). So far that is the first and only known hack of the Binance exchange.
AlphaPoint claims their security system is based on the same architecture utilized by many major trading systems used by some of the world’s largest and most powerful financial institutions. As the company is very secretive about their clients’ identities, it is not known whether there have been any security incidents with AlphaPoint customers at all.
ChainUP is believed to have experienced no security issues from their 300+ exchange customers. The company touts the perfect set of risk control systems and a situational awareness system that performs real time risk and threat detection. Further, they also cooperate with global blockchain security institutions to ensure safety and compliance measures are maintained.
What is the breakdown? Security is a huge concern for traders and exchanges alike. AlphaPoint has not been vocal about whether its clients have suffered security incidents so it is hard to compare their security record with that of Binance. If ChainUP has managed to live up to its claim of zero security incidents over 2 years and having served 300+ exchange customers, then ChainUP tops Binance here. Binance suffered a major and costly security breach, but did own up to it and did have contingencies in place to cover the losses.
Customer Service and Feedback
Binance has a long rapport amongst traders for their intuitive and robust platform. They also offer multilingual support and dependable 24/7 customer service online; reassuring traders that they are being taken care of. With a friendly and socially engaged CEO and a mostly transparent way of doing things, Binance has won the favor of a majority of the community.
AlphaPoint has formed many strategic partnerships with enterprise solution providers and is believed to be a major service provider to many top exchanges.
There are reviews from crypto exchanges applauding ChainUP’s services directly on their site. ChainUp claims to have spent over 21,500 hours on security operations, improvements and maintenance experience.
What is the takeaway? Binance still wears the crown in the eyes of the majority of crypto traders. If this cult-like dedication can translate to their new exchange customers, Binance will be near unstoppable in the white label solutions industry. However, until then, companies such as AlphaPoint and ChainUP with proven track records of serving this sector may still have the upper hand.
Marcus Henry is an American Journalist with over 11 years working in the tech industry. He has been actively involved in the crypto community for the past three years and currently works out of Austin, Texas. He covers breaking news, writes perspective pieces and reflections, and conducts interviews with industry professionals and community members. Follow Marcus Henry on Twitter- @MarcusHenryHODL
Disclaimer: The information above does not constitute investment, financial, trading or any other sort of advice and you should not treat any of my content as such. I do not recommend the purchase, sale, or holding of any cryptocurrency or other product and nothing I write about should be deemed as an offer to purchase, sell, or hold a cryptocurrency or other product or service. Please do your own research and consult a certified financial professional before making any investment decision.