Among the biggest cryptocurrency exchanges by trade volume, Binance has been an impressive player in the cryptocurrency markets. Having started off in mid-2017, Binance has quickly risen to prominence to be ranked among the top three cryptocurrency exchanges in the world. Binance is also the fastest growing unicorn startup in the world, having raised over $2 Billion in less than half a year - something it is rarely given credit for. Today, Binance has achieved another major landmark.
As Binance’s quarterly results for their second quarter come out, it has been noted that the company recorded a profit of $200 Million. This is an impressive achievement considering they only made $7.5 Million profit in their first quarter. The quarter-on-quarter growth is that of 2,757% for Binance. The results of their second quarter were reported in a blog post, posted by Chengpeng Zhao, the founder and CEO of Binance on LinkedIn.
Zhao stated that this massive growth of Binance in its second quarter states that this massive growth proves that there is acceptance and positivity in the markets when it comes to cryptocurrencies. With this wave of optimism continuing, Zhao hopes that “blockchain technologies and cryptocurrency will be mainstream” soon.
Zhao is leading Binance from the front. A few days ago when the exchange went through a major outage and was down for over 12 hours, it was Zhao who was pacifying the users on Twitter with constant updates regarding the website’s status. To their credit, Binance bounced back hard after this update - even giving their users a discount on trading fees as a sign of goodwill.
While Zhao doesn’t state the reason behind this massive profit that Binance recorded, it could easily be assumed that when they started off their operations, the China controversy had led in a dip in the prices. However, the second quarter witnessed BTC hitting an all-time high of $19,000+ and currencies growing by thousands of percent in a matter of weeks! That was the boom phase of cryptocurrencies - and the timing was just perfect for Binance.
In the past Binance’s trading fee used to be BTC 0.001. However, on Friday the exchange announced that they are slashing it down by 50% to BTC 0.0005 - which is the equivalent of $5.5 per withdrawal, which is quite an insignificant amount. Binance recently adopted the SegWit wallets, meaning that transactions will now be faster and cheaper to process. Other cryptocurrency exchanges such as Kraken and BitFinex too reduced their fees over the past week.
Binance, which is currently in its third quarter, is expected to record even higher profits in this quarter, as per Zhao. The Exchange has over 160 cryptocurrency tokens, including their own BNB token. With a trading volume of almost a billion dollars a day, Binance has indeed become a juggernaut in the cryptocurrency markets in a relatively short time.