Binance Defends Market Share, Citing User Protection as Key Factor

Binance founder Changpeng Zhao has defended his company's market dominance, attributing it to protecting user interests rather than exploiting them. In a recent statement, CZ pointed out that Binance had refunded users $6 million in 2017 after China banned cryptocurrencies, and that the exchange had set aside funds for potential losses.

CZ also highlighted the company's focus on user protection, citing examples such as earmarking $283 million for addressing de-pegging losses. He noted that other exchanges may prioritize profits over users' well-being, leading to instability in the market.

The statement comes at a time when Binance is facing scrutiny over its handling of a system glitch in October 2025, which led to a flash crash and a $700 million payout. CZ emphasized that protecting user interests is paramount for Binance, and that this approach has contributed to the company's market share.

According to The Block's report, Binance had over 300 million registered users with a spot market share of 41.14% in June 2025. CoinGlass records show that user reserves on the platform reached $152.9 billion at the first quarter of 2026, accounting for 73.5% of the big centralized exchanges.