, the world’s largest exchange by volume, is still profitable despite last year’s market meltdown, its chief financial officer Wei Zhou said, CNBC reported on February 14, 2019.
Bear Market Had Little Effect on World’s Largest Crypto Exchange
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The prices of almost all have plunged nearly 80 percent since their historic high in , causing devastation across the entire crypto industry. With companies left and right struggling to stay afloat by cutting back employees and rushing to diversify their assets, it’s hard to see how any large operation could survive the crypto winter.
However, there’s an exception to the rule, as the world’s largest exchange seems largely unaffected by the longest bear market recorded in digital asset history.
a February 14 report from CNBC, is among the rare crypto companies that are still profitable despite last year’s market meltdown. CFO Wei Zhou told the publication in a phone interview that the business is profitable, but did not disclose its financials publicly.
The lack of financial data from the company has made it hard to estimate ’s profit, and media outlets have been publishing estimates based on publicly available metrics.
One report, by industry publication The Block, estimates made $446 million last year, CNBC . The report is based on an analysis of how much the exchange spent to buy back units of its , called , using its net profits.
Binance’s Profits Measured in Billions
, the founder and chief executive of , Bloomberg in July 2018 that was targeting a net profit of between $500 million and in 2018. An incredible feat, to say the least, for a company that was founded in July 2017.
Despite being relatively young, has already positioned itself as a in the crypto industry. Its initial coin offering raised an unprecedented $15 million, which helped it achieve never before seen volumes.
The exchange’s volumes in 2019 aren’t even close to its highs in 2017 but are still the largest of any crypto exchange operating today. According to data from CoinMarketCap, hosted $715 million in trades in the last 24 hours alone.
Wei Zhou, a former chief financial officer at Chinese jobs site Zhaopin and TV ad company Charm Communications, was hired in September 2018. Zhou was responsible for overseeing both companies through their initial public offerings, which prompted many to suspect was planning to go public.
When CNBC asked him whether could seek a stock market listing of its own, given his background, he there were “no plans” in the short term.
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Published at Fri, 15 Feb 2019 13:08:05 +0000
