Binance expects full-year net profit of up to $1bn
Binance chief executive Changpeng Zhao said on Friday he expected the world’s biggest cryptocurrency exchange to make a net profit of up to $1bn in 2018.
Not bad for an industry focused on trading one of the most volatile investment sectors seen this year.
Spike before the crash
But, while many have focused solely on the crypto crash this year, it is worth remembering that prior to the crash was a massive rally that saw bitcoin hit a peak not far shy of $20,000.
Indeed, Binance founder revealed in a LinkedIn blog post in March that second-quarter profits were up 2,800% to $200m, from its first quarter earnings of $7.5m.
Binance was co-founded by Zhao a year ago and now has more than 10 million users and daily turnover of around $1.5bn. The Tokyo-based exchange makes its money by charging transaction fees of 0.2%.
Despite the subsequent crash in cyptocurrency prices, turnover has expanded to such a rate that Zhao now expects full-year net profit between $500m and $1bn.
Financial information on cryptocurrency exchanges is difficult to come by, unless divulged by an insider. This is because most are only one or two years old and are privately held, meaning they are under no obligation to publicly report their financial results.