Even Without Margin Trading, Binance is Turning Over $3.48 million per Day
Binance, the second-largest cryptocurrency exchange in the world, is aiming at daily and yearly earnings that equal or surpass those recorded by big traditional financial institutions. According to a recent analysis, Binance is making a cool $3.48 million per day. Using the same scale, Binance has a yearly turnover of $1.2 billion.
There’s more, recently Binance chain registered a noteworthy milestone. In Reddit, a user noted:
“Binance CEO, Changpeng Zhao, celebrated a huge milestone – a transaction of $1.2B worth of BNB across the Binance Chain, completed in 1.1 seconds, with a nominal fee of just $0.015.”
The BNB transaction took place on June 26 at 08:35 UTC. The coin, Binance Coin (BNB), is currently at seventh on the cryptocurrency leader board. Additionally, the coin has a market capitalization of $4.1 billion changing hands at $26 at the time of writing.
The Future Is Here
To celebrate the successful completion of the transaction, the Binance CEO tweeted,
“the future is here.”
Luckily, the same future is following Changpeng Zhao (CZ) to his books of accounts. The exchange’s profitability margin is growing.
As recorded by a profitability analysis platform, howmuch.net, the crypto exchange is topping other exchanges in profits. Daily, Binance is making over $3 million. On the same trend, the exchange would see its earnings exceed $1 billion in less than a year.
Part of the success can be attributed to the vibrant Binance Launchpad, a platform for issuing Initial Exchange Offerings (IEOs). To point out, cryptocurrency projects often record high investor engagement while surpassing crowdfunding expectations.
Notably, behind success is a strong team spread across the globe. The employee to profits ratio (return per employee), for example, is $3.62 million per year. Unfortunately, big traditional financial institutions are nowhere close to these numbers.
Europe’s Leading Bank Lagging
As an illustration, in 2017, Europe’s banking giant, UBS, reported a return per employee of roughly $50,000 or, €449,000. Lloyds, another banking giant based in the United Kingdom, reported a return per employee rate of approximately $31,000 or, €278,100.
Significantly, in the United States, Binance’s profit margin surpassed that of JP Morgan, a leading bank in the US. For instance, last year, JP Morgan had an employee base of more than 256K. In 12 months, the employees brought in $6.9 billion. Consequently, the bank had a return per employee below $27,000.
Ironically, Binance can compete and win despite its two years of existence. Luckily, the exchange’s profit margin curve will only get steeper over time.
Margin Trading for More Profitability
Apart from the IEO platform, Binance recently launched its crypto 2.0 trading platform. Additionally, the exchange announced the activation of a margin trading functionality.
Fortunately, with the vast earnings, Binance is giving back to society through its charity deeds. For example, the exchange, through its Binance Charity division, gave lunch to school-going children in Uganda. The project was dubbed ‘Binance Lunch for Children.’
According to Binance:
“Binance Charity is dedicated to battle hunger by focusing on food charity for school children in Uganda. We will select schools that serve poor children and choose reliable food suppliers that provide healthy food for children with a competitive price. We will open crypto wallets for each child, with each crypto wallet being under the custody of their parents. They will then send the received BNB, BTC, and ETH to suppliers’ wallet to exchange for their children’s food. Everything will be on the chain and verifiable for everyone.”