The world’s biggest crypto exchange, with current trading volumes of $1.3 billion, now has 10 million users, according to Changpeng Zhao’s statement in an interview.
The currently mainly crypto to crypto exchange, has already generated $300 million in revenue from trading fees, he said.
They charge 0.1% per trade, with the fee seemingly applying regardless of traded amounts or any other consideration, except they apply a 50% discount if you use the exchange’s own token called BNB.
Zhao apparently expects net profits to hit $500 million to $1 billion this year, which suggests that $300 million may have been misreported as revenue rather than profits.
The sum sounds considerable, with the exchange recently announcing they are to allocate 10% of trading fees to a safu fund.
That’s to be used “to offer protection to our users and their funds in extreme cases,” the exchange said earlier this week.
The fund was announced after an API exploit sent Syscoin’s price to 96 btc, or some half a million dollars, from the usual price of around 2 cent.
How exactly that happened remains unclear, with Binance currently having a considerable amount in their bitcoin hot wallet at $120 million worth.
Their cold wallet storage amounts to around $2 billion for just bitcoin assets from what is known. They of course trade many other cryptos, including ethereum, bch, and many other well known ones, as well as plenty that few have heard of.
The exchange is very new, starting its operations just a year ago, but quickly rose to prominence due to their fast trading engine and in part because they were one of the first to offer ethereum trading pairs.
Their numerous crypto offerings also attracted speculators as well as traders that specialize in arbitrage, scouring the many trading pairs for any deviation from which they can make relatively safe profits.
What Binance’s own full breakdown of revenue and profit figures is, however, remains unclear, but the exchange does appear to be making quite a bit of money from all those trading fees.