The largest cryptocurrency exchange by trading volume, Binance is running a profitable business “even in this bear market,” stated CFO Wei Zhou.
Profitable Even in This bear Market
Crypto market has lost over $700 billion since its peak as the majority of the cryptocurrencies are down 80 to 90 percent from their all-time highs. However, despite the prolonged bear market, the largest cryptocurrency exchange of the world by trading volume, Binance is still profitable, according to its chief financial officer.
In an interview with CNBC, Binance CFO Wei Zhou stated,
“To date, even in this bear market, we still run a profitable business.”
In July last year, Binance CEO, Changpeng Zhao told Bloomberg that the exchange was targeting a net profit of between the rage of $500 million and $1 billion in 2018.
The company doesn’t disclose its financials publicly, told Wei Zhou. However, recently, on the basis of amount spend by Binance on buying back its own BNB tokens using 20 percent of its net profits, The Block estimated the profits to be around $446 million last year.
Established in July 2017, Binance raised $15 million in its initial coin offering (ICO). It has been just about one year and a half since the exchange came into existence. But in this short amount of period, it has become the largest cryptocurrency exchange with the daily trading volume of $476 million, as per the data provided by Coinmarketcap.
Always on the Lookout for High-Quality Products
Though in 2019 the trading volume has dropped down significantly since late 2017’s rally, it is still managing its first position in the crypto space.
Wei Zhao further shared that Binance has “no plans” in the short term to seek a stock market listing. The firm had hired Zhou in September 2018, to handle its finances who previously had been serving in CFO roles at Chinese jobs site and TV ad company.
Binance is currently working on its expansion as it is soon going to launch its Binance Chain, a decentralized exchange for public testing and recently launched Binance.je for its European clients. Just last year, the company had bought crypto wallet maker Trust Wallet for an undisclosed amount and invested $2.5 million in TravelBit an Australian start-up that lets users book flights with cryptocurrency.
“We’re always on the lookout for high-quality products,” he said on the subject of potential mergers and acquisitions.