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Since cryptocurrency first arrived on the scene back in 2009, we have seen a number of exchanges come and go. That being said, only a select few companies offering folks an opportunity to swap their digital tender have risen to the very top – in terms of profitability.
However, these days, when it comes to trading platforms, it’s a company known as Binance that’s currently leading the charge. In fact, the organization is doing so well that they expect to bring in a net profit of around $1 billion (USD) in 2018.
The fact that a company that’s only been around since 2017 is already having this kind of success, is one of the many interesting things about the world’s leading crypto exchange. In truth, there are a lot of fascinating facts about Binance, and we are going to cover some of them today.
With that in mind, fasten your seatbelts and get ready for some very interesting facts about the reigning king of crypto trading platforms.
5. More Profitable Than Deutsche Bank:
Our intro mentioned that Binance is expecting to have a big 2018 in terms of profitability and they are well on their way to doing just that. In fact, in Q1 of 2018, the crypto exchange was more profitable than Germany’s largest bank.
That’s right, Q1 saw Deutsche Bank bring in $146 million worth of profit, while Binance recorded $200 million.
The banking giant has roughly 100,000 employees; compared to the crypto exchange which employed roughly 200 people at the time – demonstrating that relatively small startups can indeed hang with the big boys.
The feat is even more impressive considering Deutsche has been around since 1870 and Binance just launched last year.
4. An Organization On The Move:
Despite the fact that Binance is a very new company, they have already moved their HQ several times.
The organization originally launched in China, having been Co-founded by a Chinese-Canadian business exec named Changpeng Zhao along with his partner, crypto evangelist, Yi He.
Due to regulation, most notably the Chinese ICO ban, they moved their headquarters to Japan –while also setting up offices in places like Taiwan and South Korea. However, Binance would also encounter several regulatory issues in these countries as well.
As a result, Binance once again relocated – this time to the crypto friendly nation of Malta.
The country’s Prime minister Joseph Muscat welcomed Binance with open arms. Last March, he even posted the following statement on his Instagram account;
“Welcome to #Malta @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world-class fintech companies –JM.”
It fair to say the Binance is, quite literally, a company on the move.
3. They Created Their Very Own Cryptocurrency:
In July of 2017, Binance introduced their own form of digital currency on the Ethereum blockchain – the ERC-20 BNB Token – commonly referred to as the Binance Coin.
Binance uses the BNB token as the underlying gas to power their ecosystem. Moreover, the Binance Coin also allows users to enjoy discounts as high as 50% on Binance trading fees when using the altcoin.
At press time, the BNB token is 16th most valuable cryptocurrency – their market cap currently sits at over $1,050,000,000.
Due to the success of the BNB token, several other crypto exchanges have decided to follow Binance’s lead, by creating their own altcoins. Crytopia, KuCoin, and CryptoBridge are just a few platforms that have decided to launch their own tokens.
Given that so many trading platforms have opted to create their own “native” cryptocurrencies, it’s fair to say that the BNB Token was a bit of game changer.
2. The Tokens Are Burning:
When it comes to the Binance Coin, burning tokens can be a hot topic. For those wondering what exactly “burning” is, as it pertains to the BNB token, Blockonomi.com author Oliver Dale provides an excellent explanation.
“Binance will use 20 percent of the profits from every quarter to buy back and then burn BNB. It will continue this process until the supply of BNB is 50 percent of the original amount, with 100 million BNB remaining. Every buyback transaction conducted by Binance to burn BNB will be announced via the blockchain for transparency.”
Of course, the obvious question here is how will these buybacks affect the altcoin’s price going forward? The burns that have occurred thus far have had a positive impact on the price point.
As Oliver Dale puts it, “The price tends to increase dramatically right before the burn and then drop down a bit right after the burn. This post-burn drop, however, is still well above the value of the token before the pre-burn rally.”
In other words, these burns seem to get folks fired up.
1. Binance can process up to 1.4 million orders a second:
This mean, in their own words, “You can be certain, on our exchange, that your orders will never be stuck due to the matching engine being overwhelmed.”
Thanks for checking in. For those who like to learn more about Binance, be sure to check out our previous article, The Binance Boom.