While 2018’s cryptocurrency crash impacted a lot of major players, subjecting them to losses worth billions of dollars, the world’s largest cryptocurrency exchange, Binance is still raking it in.
In his statement, Changpeng Zhao, the Binance CEO, mentioned that the exchange is anticipating a net profit of $500 million to $1 billion in 2018. Speaking in an interview with Bloomberg, Zhao revealed that the firm’s first half revenue was around $300 million. He further revealed “the average daily turnover of the exchange is roughly around $1.5 billion.” Binance now has around 10 million users.
The figures illustrated by Zhao corroborate the fact that even now some cryptocurrency exchanges are thriving quite well. This is quite remarkable, especially since Bitcoin has lost 52% of its value this year, with buyers pulling back. Apart from that, every now and then there is news about exchange platforms being repeatedly hacked, leading to regulators tightening their scrutiny and supervision.
Expanding to More Venues
According to Bloomberg News, Binance have encountered confrontation with authorities in Hong Kong and Japan, but soon have plans to allow customers at venues in Bermuda, Malta, and Uganda. It plans to facilitate this in order to to convert their virtual tokens to fiat currencies, including the Euro.
Earlier last month, the exchange giant entered in to an agreement with Digital Jersey that will see the opening of a crypto exchange in New Jersey. Earlier last month, Zao announced that they had already opened a bank account in Malta which was meant to bolster customer confidence, seeing as a large number of exchanges have been facing challenges when trying to open bank accounts.
At the beginning of the year, Zhao mentioned that Binance has 2 million users. The exchange, which started in July 2017, opened exactly 11 days after raising around $15 million in an initial coin offering. The exchange has been hosting around $11 billion of trading per day, ever since the crypto frenzy peaked late last year. Coinmarketcap.com had Binance topping the ranking of exchanges within a span of 24 hours, with a record trading day of $1.3 billion.
The platform’s founder, Zhao, is considered a crypto genius, having led a startup to anticipating billions of dollars within less than two years since its establishment. Zhao is the single largest shareholder in Binance and makes all the company’s key decisions – hence why he is revered in the industry.
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