Binance CEO Looks to Bag $ 1 Billion Profit for 2018
The world’s biggest cryptocurrency exchange, Binance, is hauling in money even while the crypto market have been bearish. The exchange, only a year old, has become one of the industry’s most valuable enterprises — leaving no doubt that trading platforms have been the biggest beneficiaries of the crypto craze so far.
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Binance Takes on Giants of the Financial Realm
Recently, Binance CEO Changpeng Zhao revealed he expects a net income of $500 million USD to $1 billion for the year 2018, as reported on Bloomberg. Just halfway through the year, it has netted $300 million and expects more action on its platform in the second half. The exchange, which boasts over 10 million users, claims over $1.5 billion in daily turnover.
If Binance meets its expectations — i.e: the $1 billion profit mark — then it will be in the same league as some of the biggest institutions that have operated in the traditional finance industry for decades.
To paint a clearer picture: Binance’s profits would level with British multinational investment bank Barclays, Switzerland’s second-largest bank Credit Suisse Group AG, the world’s 17th largest bank by total assets Deutsche Bank, Germany’s second-largest bank by asset size DZ Bank AG, and India’s largest bank State Bank of India.
It’s Just the Start for Crypto Exchanges
It’s not just Binance — the United States’ biggest cryptocurrency exchange Coinbase reported $ 1 billion in revenue from the year 2017, when Binance was just starting up.
Even the few negatives, such as globally regulatory entities tightening their grip on the crypto ecosystem, exchange hacks, and bearish market, are not able to slow crypto trading activities. Crypto exchanges seem to be on the winning side as crypto traders ride the volatility in either direction, even with Bitcoin losing over 50 percent of its value since the start of the year.
Binance customer numbers have also mushroomed by five-fold over the past year, reaching 10 million crypto traders at present. Recently, the company also announced it’s opening a crypto-fiat exchange in Uganda. Zhao said they will also undertake to expand crypto services to other locations around the globe.
Until now, most of the trading activity came from crypto aficionados (old and new), but with the institutional investing herd long anticipated to enter the market, Binance’s predictions may even seem low. If those investors materialize, profit figures could easily double by the end of the year.
Will crypto exchanges be the next financial giants? Share your views in the comments section.
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