Binance is an example of how success can be achieved with a good idea and a committed team. With just over one year of existence, the Exchange has managed to occupy the number one position of coinmarketcap as the largest spot cryptocurrency exchange by trading volume.
So much is Binance’s success that its business has expanded to various branches that have created a complex ecosystem around the Brand. An article published by crypto investor known as Rallyqt elaborates on the various initiatives that Binance have developed over time.
According to Rallyqt, the growth of Binance is due to the perseverance and good decisions made by the Exchange staff to adapt themselves to the ever-changing ecosystem, especially concerning the bearish market, which strongly discouraged cryptocurrency trading:
“Binance evolved. This critical decision to move and demonstrate perseverance created a ripple effect that ultimately paved the way for Binance to become one of the largest cryptocurrency exchanges in the world.”
However, it is difficult to quantify Binance’s earnings to “measure” its success. Binance does not reveal its financial results to the public, but Larry Cemark, an analyst at The Block, used the available information to give an approximate view of the monetary gains obtained by the company.
Binance is Growing, But Not As Much As Expected
According to the calculations of The Block, Binance’s earnings have been at least 446 million dollars, slightly less than the minimum expected by Chanpeng Zhao:
“Binance CEO Changpeng ‘CZ’ Zhao told Bloomberg in early July that he expected the exchange’s net profit to be between $500 million and $1 billion in 2018. However, based on The Block’s calculations the firm was a bit shy of hitting the low-end of CZ’s prediction, bringing in a total of $446 million.”
The report explained that the bearish market of 2018 strongly affected the company due to the low level of trading. According to estimates of the study, in Q3 last year the company had profits of at least 80 million dollars, while in the previous quarter of the year the profits almost halved.
Although perhaps The Block’s estimates show a difference of 54 million between reality and what CZ expected, the millionaire profits regardless of having an entire market against them show that Binance is not only a solid business but that it has every chance of growing and maintaining its crown among all the world’s crypto exchanges.