Binance Made Half a Billion USD Profit in Its First Trading Year
Leading cryptocurrency exchange Binance has successfully achieved its first full year of trading this month.
Founded in July 2017 by Changpeng Zhao, Binance was initially based in China but moved to the Island of Malta in May following a regulatory crackdown on cryptocurrency trading in China and Hong Kong. Since then, Binance has been on an expansion spree and most recently launched its first fiat/crypto exchange in Uganda.
The service raised 15 million dollars in a July 2017 Initial Coin Offering for its ERC20 BNB token which is currently the 18th biggest crypto asset with a market capitalization of around $1.3 billion.
In the recently published “First Year in Review”, Binance covers the most important milestones achieved by the exchange which saw remarkable growth within the space of one year.
— Binance (@binance) July 19, 2018
Binance broke into the top 10 crypto exchanges within 42 days of operation, moving into the top 5 within 92 days. Three months after launch, this unbanked crypto exchange made $7.5m in profit and went ahead to become the largest cryptocurrency exchange in just 165 days.
Its native token BNB has also enjoyed steady growth since launch, recently hitting an all-time high of more than $16.5. This can be attributed to Binance utilizing the coin on their exchange to reduce trading fees, as well as the quarterly $BNB burn whereby Binance uses 20% of their profits to buy back $BNB and burn them.
The cryptocurrency exchange has burned over 7.5m $BNB tokens within the last year and according to bitGuru, Binance has a made profit of $501,291,753 in its first 12 months. The exchange performs the coin burn in order to increase the value of the token as an incentive for Binance Coin holders.
Binance has also seen the launch of several projects within the Binance ecosystem. These include their Android and iOS applications, Binance Labs, Binance Info, Binance Chain, Windows and MAC clients, and more recently, Binance Charity Foundation which recently raised funds for victims of Japan floods.
Binance’s rapid rise to success could be attributed to its back-end support. According to the report, the multi-language cryptocurrency exchange has handled 200,000 support requests and assisted customers in recovering over $1.3 billion in lost crypto.
The exchange currently supports 143 projects and offering over 370 trading pairs for customers. Its competitions offering prizes of luxury cars, electronics and other coins within the past year accounts for roughly 4,000 BTC.
Binance CEO Changpeng “CZ” Zhao has continued to lead the exchange toward greater heights with his vision of a cryptocurrency ecosystem that will assist in mass adoption.