Binance’s big Q1 profits and “moonshot” trajectory

Binance moonshot

Binance’s big Q1 profits and “moonshot” trajectory

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Binance moonshotTalk about a “moonshot” in the cryptocurrency world.

The Q1 profits of eighteen-month-old cryptocurrency exchange Binance certainly qualify as a moonshot.

For those few of you who don’t know, “moonshot” is cryptocurrency investor slang describing an altcoin or other investment that wildly overshoots or exceeds investor expectations.

Big revenue, big Binance profits

 

Let’s talk numbers. In Q1, Binance made $200 million in profit with 300 employees.

On Twitter, Dovey Wan, managing director of DanHua Capital, compared those results with 148-year-old Deutsche Bank which made $146 million in Q1 2018, with more than 100,000 employees.

Binance poised to growAfter taking some criticism for comparing apples and oranges, Wan noted that Binance was only $9 million shy of NASDAQ’s $209 million profit in Q1 2018 with only 4% of the staff of the larger mainstream exchange.

So much for the bear market.

Binance revenue: What bear market?

 

Binance CEO Changpeng Zhao recently said he expects the firm will generate more than $1 billion in profits by the end of 2018.

That’s based on an average daily trading volume of $1.5 billion and a user base of more than 10 million compared to only 2 million at the start of 2017.

Some critics say this is partly due to “exorbitant” listing fees for new digital coins that exceed $2 million along with other built-in incentives. Others say it’s a sign of global investor interest in the growing cryptocurrency and digital asset marketplace.

Global ambitions

 

Binance poised to grow globallyBinance is not resting on its laurels. It has global ambitions, evident in its strategic opening of its new head office in Malta, and new satellite offices in the Bahamas and Liechtenstein.

On July 31, Binance made its first acquisition, buying US-based Trust Wallet, an open source, anonymous, decentralized wallet that supports Ethereum (ETH) and over 20,000 different Ethereum-based tokens (ERC20, ERC223, and ERC721).

On August 9, Binance demoed its planned, new decentralized exchange which will allow the creation, listing, and trading of tokens. Zhao says when it launches, the new exchange will be more secure than typical centralized exchanges and less vulnerable to hackers.

Not bad for a small 2017 start-up from China. Expect much more impressive, interplanetary results as Binance takes off with its far-reaching growth plans.