Binance on Course to Post $1 Billion Profit in 2018
Jul 8, 2018
Binance, the largest cryptocurrency exchange platform based on daily trading volume, is on course for a profitable 2018. Company CEO, Changpeng ‘CZ’ Zhao, in a recent interview declared that Binance could make as much as $1 billion in profit this year.
Binance has dramatically expanded its user base while becoming one of the most notable brands in the emerging cryptocurrency market. The company has even begun investing in the industry, setting up a fund to support cryptocurrency and blockchain technology startups.
Making Profits Despite Cryptocurrency Price Decline
2018 has been a tumultuous year for the cryptocurrency market. The prices of virtual coins have dipped significantly with the total market capitalization shedding more than 50 percent since the start of the year. Despite all of this, Binance has continued to rake in massive revenue.
Speaking during the interview with Bloomberg, CZ said that Binance recorded revenue of $300 million in the first half of the year. According to Zhao, the company which is barely a year old, has recorded an average daily turnover of $1.5 billion.
At the start of the year, CZ revealed that Binance had about 2 million users. At the midpoint of 2018, that figure has increased five-fold to 10 million users. According to CoinMarketCap, the platform has a 24-hour trading volume of more than $1 billion.
Binance Aggressively Pursuing Expansion
The stellar performance by the company hasn’t come without some difficulties along the way. The platform has run into problems with financial regulators in both Japan and Hong Kong. In response, the company is set to engineer a move to Malta where the regulatory environment is reportedly friendlier. The platform is still recovering from a week of technical hitches that made the company have to suspend its operations.
For most of the year, Binance has jockeyed with OKEx for the top spot based on trading volume. Binance recently announced the launching of operations in Uganda where it plans to offer crypto/fiat trading pairs. This move would be a first for the company seeing as it has traditionally only dealt with crypto/crypto trading pairs.
Another positive development for the company is the price performance of its token, Binance Coin (BNB). Binance coin is the native token of the Binance trading environment and has been one of the standout performers in a largely bear cryptocurrency market.
I bumped into Bitcoin in 2010 while I was still engaged in the fierce battle of obtaining my Engineering degree. I found the content of Nakamoto’s white paper fascinating since it reminded me of the works of legends like Haber and Stornetta. When I am not writing about cryptocurrencies, I am either attempting to beat my scrabble high score or engaged in some internal existential debate.