Crypto Exchange Platforms Reached Billions in Profit
Crypto exchange platform Binance reached a total amount of $200 million in revenue last January, which is closing in on that of Deutsche Bank, the largest financial organization in Germany.
As for South Korea, 2 of the biggest crypto platforms in the country, Bithumb and Upbit, have reached $100 million in monthly profit this year which came in from Tx and withdrawal fees. Taking into consideration the active funds on the exchange which amounts to $2.5 billion, along with a Tx fee of 1%, Bithumb had achieved a total of $2.5 million in daily profit as of early 2018, according to a researcher named Jung Yoon-ho.
On the other hand, because of the current bear market, with the trust in crypto platforms continuously decreasing as well following two breaches in security on Bithumb, it is predicted that monthly profits of the biggest cryptocurrency platforms in the country decreased to about $60 to $70 million from $100 million during the past ten months.
Reasons Behind Profit
Tech giant Coinbase has an estimate of $1.3 billion in profit on sales this year, which is coming from fees for trading activities on the exchange, along with income from the company’s own cryptocurrency holdings. The startup has various measures internally when it comes to revenue, so the precise numbers can vary. Most of the profit that comes in by crypto exchange platforms is achieved from trading fees and withdrawals.
Moreover, Binance has previously said that it has plans to donate its listing fees through projects that will be listed on the platform, for crypto funding of transparent projects from recognized institutions such as the UN.
The Chief Executive Officer of Binance, Changpeng Zhao, says that the major goals of the UN are quickly realized through charity projects. But what Binance set out to achieve introduces a whole new level through the betterment of transparency within the scope of charity.
Furthermore, some of the biggest crypto platforms have focused their profits within their main models to make crypto trading easier and with as few fees as possible. During the past 11 months, the total volume of the crypto market has dropped by half, which was about $20 billion initially. BTC, considered to be the superior digital currency in the market, has decreased from about $8 billion towards $3.5 billion. However, taking into account the $10 billion volume of trading within the crypto market, when it’s still getting started, is quite notably critical for platforms to achieve high profit.
The productive model of cryptos has indeed grabbed the attention of a number of organizations as the year passed. The largest crypto exchange platforms in South Korea are now operating through composites like Kakao, Nexon, or Shinhan Bank, multi-billion dollar organizations that seem to be dominating the local market.