Binance looking for Record Profits in 2018

Jul 6, 2018 at 19:30 Update Date :Jul 6, 2018 at 19:30 UTC

Binance, the world’s largest cryptocurrency exchange, expects its net profit for the year 2018 to fall in between $500 million to $1 billion.

Maintaining a pragmatic approach after a week of technical difficulties which saw trading temporarily suspended, Binance CEO, Changpeng Zhao told Bloomberg about his bullish target for 2018, in an interview on July 6.

Surging four-fold during the first half of the year, Binance’s user base reached to 9 million in early June from that of 2 million in January. Currently, the company has more than 10 million registered traders. Owing to its reckless build-up rate, the platform expects its user base to continue growing further.

Having repositioned to Malta earlier this year, the firm announced its plans to offer trading against the Euro, which no other cryptocurrency exchange has proposed as yet. Binance CEO Changpeng Zhao also mentioned plans to add other fiat currencies to the platform, without providing specific details. In addition, the company launched a cryptocurrency exchange in Uganda, offering fiat trading pairs for the first time under Binance.

These plans are an outcome of an increasing number of competitors, including Huobi and Coinbase amongst other major exchanges. Huobi recently launched in Australia, with plans for its London-based operations to commence trading in Q3. Meanwhile, Coinbase eyes Japan, and has secured a U.S. banking licence as well.

The company’s first half revenue was reported to be $300 million. A magnificent sum though, the firm made a collection of $200 million in Q4 2017 itself, with a much smaller investor base.

However, accomplishing the $1 billion target is easier said than done, especially if the current market conditions continue to prevail in the third and the fourth quarters. The reason can particularly belong to the extended bearish market situations and the company’s daily trade volumes. Cryptocurrency exchanges have witnessed a great fall in the Bitcoin value, from a high near $20K to $6,600 presently. Also, Binance’s current trading volumes average at around $1.5 billion which declined from $11 billion in late December.

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