In two years Binance makes $1 billion profit as Digital Exchanges mature

Source: Binance

Traditional exchanges around the world will be looking at Binance’s latest quarterly results with envy, as in the last two years it has made over $1billion of profit. CEO of Binance, Changpeng Zhao, sometimes called CZ (Chinese-born, now living in Vancouver) established Binance only in 2017. Binance raised $15 million via an Initial Coin Offering (ICO) and CZ is reported to be worth $1.2 billion. Binance, based in Hong Kong, is different from its competitors which, apart from Huobi (Singapore), are based in the USA e.g. Coinbase (San Fran), Kraken (San Fran), Bittex (Las Vagas) and Bitbox (NYC).

The amount of Cryptos that were traded in September 2019 on exchanges like Binance was still over $500 billion — down from nearly $800 billion in June 2019. According to the website Coin.Market there are now over 260 different Crypto exchanges, so we are likely to see consolidation in this sector. Institutional interest in Cryptocurrency derivatives remains healthy and although volume was down in August, the top Crypto derivative exchange, OKEx, still generated over $90billion in September this year.

Source: Cryptocompare

While the larger crypto exchanges dominate the amount of volume that is being transacted, we are seeing smaller Crypto…