1. Discussing the Rationality of Binance Square

Why “Use and Go” is Not Feasible

When considering why a platform needs to create a content-driven community, the foundational logic becomes clear. CEXs (Centralized Exchanges) provide trading services, which are inherently a decision-making process—users need information to make informed decisions.

In this context, trading platforms are uniquely positioned to serve as content communities. They can offer an environment conducive to information sharing, which is essential for user engagement.

Establishing an information-rich system allows users to move through the loop of "gathering information → making investment decisions → completing trades," enhancing both conversion and retention rates.

Most platforms in the industry focus on off-site traffic to drive new users into their ecosystem. However, this method often results in users visiting and leaving without engaging. Binance Square addresses this issue by creating a community where users can find information within the platform, reducing the risk of isolated, modularized services.

Content as the Core of Traffic

While exact figures for Binance Square’s user trends before and after its launch may be unclear, we can observe that platforms with integrated content communities tend to show better MAU (Monthly Active Users) and DAU (Daily Active Users) numbers. This is especially true for industries like finance and Web3, where the need for information is paramount.

Content platforms like Binance Square allow for the natural growth of social interactions, leading to higher user engagement and more effective customer retention. These platforms fulfill needs that go beyond the mere provision of trading tools.

Expanding the Service Matrix

A CEX is more than just a trading tool. Platforms often include additional services like financial management, copy trading, and wallets, all of which can benefit from content-driven strategies. These services provide additional revenue streams while fostering a more comprehensive ecosystem for users.

For instance, Binance offers financial services that generate income through yield differentials, and copy-trading services that benefit both high-level traders and new users. By embedding these services into a content community, platforms can achieve higher conversion rates as users actively seek out relevant information.

2. The Product Moat: Why It’s Hard to Replicate

Social Relationships as a Unique Asset

Many trading platforms have attempted to integrate community features, but few have succeeded in making them a core part of their product strategy. User-generated content (UGC) helps distribute information more effectively, and it’s a key driver of Binance Square’s success.

While it's easy to replicate the structure of a trading platform, trust and user engagement are much harder to build. Binance Square’s UGC-driven ecosystem fosters user trust and creates a community that isn’t easily replicated by competitors.

Social Relationships as a Driver of Retention

Social interaction is at the heart of Binance Square. By allowing users to share content, give feedback, and build relationships, Binance has created a system that encourages users to return frequently. Positive interactions encourage dopamine-driven behavior, while even negative feedback spurs continued engagement.

This results in a stronger, more stable DAU, as users develop content assets and build lasting connections within the platform.

Long-Term Retention and Investor Growth

The long-term value of social-driven platforms lies in their ability to educate and retain users. While traditional investor education can be dry, platforms like Binance Square engage users more naturally through peer relationships and content creators, encouraging continuous growth and development.

For many users, these platforms provide a wealth of knowledge, even for those who may not initially seek it. This creates a virtuous cycle of learning and engagement that supports long-term platform loyalty.

Iterating the Product Based on User Behavior

By fostering a content community, Binance can more directly listen to user feedback and adjust its products accordingly. This user-driven approach allows for quicker iteration and improvement, making the platform more responsive to the needs of its community.

3. Expanding In-Depth B-Side Services

Marketing Logic

Binance Square also offers significant opportunities for B-side services, particularly in the marketing and promotion of new projects. Instead of relying solely on passive announcements and pushes, Binance Square allows users to actively engage with content, creating a more organic and memorable marketing experience.

For instance, content about new coin listings or project developments can be integrated into the community, offering project teams a more direct line to their target audience.

Case Study: $DODO

The recent $DODO essay contest illustrates the power of UGC in shaping market perception. While the contest aimed to generate positive sentiment, it also invited critical feedback, leading to a more balanced and nuanced discussion. This level of engagement would be difficult to achieve through traditional marketing methods alone.

For projects looking to engage a more vertical, dedicated audience, Binance Square provides an ideal platform for in-depth, authentic marketing.

Fair “Write to Earn” Opportunities

Binance Square’s incentives for content creators are relatively fair, rewarding quality over popularity. Even smaller creators have the chance to earn rewards, which encourages healthy competition and creates a more vibrant content ecosystem. This fairness also benefits the projects being promoted, as it leads to more cost-effective and organic market engagement.

4. The Moat Continues to Expand

Looking forward, Binance Square is likely to evolve even further, with potential developments in video content, live broadcasting, and other social features. These additions will make Binance Square an even more robust platform for content creation and community engagement.

In the long run, these seemingly simple product decisions are helping Binance build a competitive moat that will be increasingly difficult for rivals to breach. By combining trading tools with social engagement, Binance Square is creating a platform that not only serves its users but also fosters lasting relationships and trust.$BTC