$1 Billion: Cryptocurrency Exchange Binance Eyes Record Profits in 2018

Bear market? What bear market? That’s the attitude at Binance, the world’s largest cryptocurrency exchange, which expects to rake in between $500 million and $1 billion in net profit during 2018.

Binance CEO Changpeng Zhao revealed this bullish target during an interview with Bloomberg, highlighting the whirlwind pace at which the exchange has grown since July 2017, when the then-China-based platform opened for business after raising a modest $15 million through an initial coin offering (ICO).

As CCN reported, Binance’s user base more than quadrupled during the first half of the year, from 2 million in January to 9 million in early June. Now, Binance has more than 10 million registered traders, and the company’s breakneck rate of expansion makes it likely that the platform will continue to onboard new users at a steady pace.

binance
Cryptocurrency trading volume has declined by roughly 50 percent since the start of the year, and major platforms like Binance have not been immune from the downturn. | Source: CoinMarketCap

Last month, Binance launched a cryptocurrency exchange in Uganda, and this platform became the first under the company’s banner to offer fiat trading pairs. The firm has also announced plans to offer trading against the euro in some jurisdictions, a development made possible through its budding relationship with regulators in the island nation of Malta.

Nevertheless, achieving $1 billion in profit is going to be an uphill battle, particularly if the current bear market continues deeper into the third and fourth quarters. Zhao said that Binance’s first-half revenue was $300 million. That’s an impressive sum, but the firm made $200 million in Q4 2017 alone, with a much smaller user base.

That’s because cryptocurrency trading volume has fallen dramatically during 2018, a result of the prolonged bear market that has seen bitcoin decline from a high near $20,000 to a present value near $6,600. Binance is currently averaging about $1.5 billion in daily volume, down from a peak of $11 billion in late December. The overall cryptocurrency market, meanwhile, has seen about $16.2 billion in trades over the past 24 hours.

Featured Image from Shutterstock

This article is protected by copyright laws and is owned by CCN Markets.

About the author

Josiah Wilmoth
Josiah Wilmoth

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

Do NOT follow this link or you will be banned from the site!