Although we’ve only just started to bounce out of the bear market for crypto, Binance is expected to earn between $500 million and $1 billion in net profits for 2018.
Changpeng Zhao, the CEO and founder of Binance revealed this target in an interview with Bloomberg. According to the interview, the exchange has already earned $300 million in the first half of 2018, moving a billion dollars in crypto on a daily basis, according to CoinMarketCap.
Bitcoin peaked at approximately $20,000 in December of 2017. At that time, Binance was moving as much as $11 billion in trades per day. Bitcoin currently sits at just over $6,600, about one third of that amount. Yet despite the drop in value over the past several months, Binance has been highly successful in facilitating trades in Bitcoin and other coins. This may be why the exchange has been on the radar for authorities in Japan and Hong Kong, forcing the company to explore setting up shop in new jurisdictions, including Uganda, Bermuda and Malta.
When Binance signed a deal with Bermuda, the company agreed to create no fewer than 40 new jobs, with at least 30 going directly to Bermudians. While this number may seem small, in a British territory with a total population of just 65,000 people, it is actually very meaningful. As Binance opens its doors in other areas of the world, it will continue to spread opportunity to those places that provide the friendliest environments for blockchain companies, and cryptocurrency exchanges.
According to CoinMarketCap, Binance is the second largest digital currency exchange in the world by total volume, with just $30 million less in daily trades than OKEX. OKEX was founded in 2014 with investments from such companies as VenturesLab, Ceyuan Ventures, Giant Network Group, Longling Capital, Qianhe Capital Management and eLong Inc. By contrast, Zhao founded Binance in 2017, just one year ago and has seen meteoric growth in trading volume on his exchange. Prior to that, he worked on a number of cryptocurrency projects, including Blockchain.info, and his role as CTO of OKCoin. Rather than through venture capital, Binance was funded through a $15 million ICO where everyday investors backed the project in exchange for BNB coins. At that time, the coins were worth about ten cents each. Today, one BNB trades at $13.90, or a 139x increase in value for investors who got in early.
Binance had two million users in January. Since then, the company has grown to support 9 million users by early June, despite having long periods when Binance was not accepting new users, in order to build out better infrastructure to support its existing users. Today, the exchange runs well, with far less downtime than when it was first released. Today the company has over 10 million registered users, and it continues to grow despite regulatory crackdowns and technical challenges. Part of this growth includes its new branch in Uganda, which is the first project that allows for fiat trading pairs in certain jurisdictions.
With all of this growth, it’s no wonder that Binance will see tremendous profits in the coming year, and if the market continues on a bull run, then we can expect Binance to grow even faster.