Binance’s Profitable Altcoin Crypto Trading Exchange Business Shines Bright Amidst Bear Drought
The cryptocurrency exchange Binance, one of the largest in terms of trading volume, remains profitable even after a year-long bear market that affected the whole industry.
The information was released by Wei Zhou, Binance CFO during a conversation with CNBC on February 14. The Chief Financial Officer of Binance mentioned that the company is still profitable. Bitcoin (BTC) fell from $20,000 in December 2017 down to $3,250 in December 2018.
“To date, even in this bear market, we still run a profitable business,” Wei Zhou told CNBC in a phone interview.
Although the company does not disclose its financial information publicly, there are some media outlets that have published some estimates based on publicly available metrics.
According to a recent report released by The Block, Binance made $446 million just in 2018. In order to reach this number, The Block took into account how much the exchange spent buying units of its token, the Binance Coin (BNB). Every single quarter, the exchange uses 20% of its net profits to burn BNB tokens.
Although this seems positive for Binance and the whole cryptocurrency market, Changpeng Zhao, the CEO and Founder of the platform, told Bloomberg a few months ago that the exchange was expecting to have a profit between $500 million and $1 billion in 2018.
The company was launched back in 2017 and it started to grow with a bull market that drove the price of the most popular digital assets to new records between December 2017 and January 2018. After that, the market plummetted and a bear trend started for the crypto industry.
In 2018, the trading volume registered by exchanges in the market dropped substantially. According to CoinMarketCap, Binance has a trading volume of $505 million in the last 24 hours. Trading volumes fell to their lower point in the last quarter of 2018. Now, in January and February 2019, the market seems to be recovering from its worse moment two months ago.
Wei Zhou mentioned that the company has no plans in the short term to seek a stock market listing of its own. The company has also bought the cryptocurrency wallet maker Trust Wallet for an undisclosed amount.