The world’s largest cryptocurrency exchange by 24-hour trading volume (according to CoinMarketCap data) aims to maintain its #1 spot, and is expecting substantial growth in the reminder of the year, despite cryptocurrency prices being on the downside for months and investor interest waning.
According to comments made in an interview with Bloomberg, Binance Chief Executive Officer Changpeng Zhao - who topped Forbes list of richest people in cryptocurrency - expects a net profit of between $500 million and $1 billion in 2018.
The company generated $300 million in revenue during the first half of 2018, after a landmark Q4 in 2017 turning $200 million in profit. Q4, however, was when the cryptocurrency market was at its peak, with Bitcoin prices surging to an all-time high of $20,000.
Binance’s growth can partly be attributed to its growth in users. Zhao said that Binance now has 10 million registered users, up from 2 million earlier at the start of the year. The average daily turnover at Binance is estimated at roughly $1.5 billion.
The growth can also be attributed to the reputation Binance has built. Not only has Binance repeatedly thwarted hacking attempts in the past, when things do go awry, Binance makes things right by reversing trades and suspending service to quarantine issues promptly.
Binance has also been a leader in creating preventative measures to better protect investors. In the past, the leading cryptocurrency exchange has offered robust bounty programs to encourage the community to self-police while also making it clear to hackers that they will be pursued for their crimes. Binance also recently announced the creation of a Secure Asset Fund for Users (SAFU) - an acronym that is a play on words related to a popular meme that “funds are safu,” further proving that Binance’s ethos resonates with the cryptocurrency community at large.
It is for these reasons that Binance will likely reach its lofty revenue goals despite the market being in overall decline.