Based on Block’s calculations, the world’s largest cryptocurrency exchange has brought in $446 million in profits.
In July 2018, Changpeng Zhao (CZ), the Chief Executive Officer of Binance, said he “expects a net profit of $500 million to $1 billion in 2018”.
Last week, CZ noted that his company is “ready to survive any number of years, no matter if it’s bear or bull. We basically don’t really look at the market too much ― not as much as people actually think we do. We just keep our heads down and build features.”
The estimated results seem to fit in fine with Zhao’s statement. Despite the bear market which pushed the cumulative market cap of the cryptocurrency market from $813 billion to $130 billion in December 2018, the exchange still managed to collect hefty profits, although a bit shy of earlier predictions.
“To date, even in this bear market, we still run a profitable business,” Binance Chief Financial Officer Wei Zhou told CNBC yesterday.
Zhou joined Binance in September last year, after occupying similar roles at Zhaopin and TV ad company Charm Communications.
Binance is not a publicly traded company, hence the company doesn’t disclose its financials publicly.
However, the Block analysts claim that “profits can actually be deduced fairly easily with some back-of-the-envelope math”.
Binance completed three funding rounds so far, with the initial one – Series A – worth around $10 million. Previously, Binance sold 100 million of its Binance Coins (BNB) for $15 million in the 2017 ICO.
According to the white paper, the company uses 20% if its net profits to buy back BNB, while it continues to burn 100 million BNB tokens.
“Binance is very healthy financially and also very stable in terms of the team. Our aim is much longer than another year. Our aim is 10, 50, 100 years. So we’ll be here for a while,” concluded CZ.
The story is sponsored by newconomy.
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