- Binance’s profits have reached a massive $1 billion
- The exchange made a profit of $183.5 million in Q3 alone
- The price of BNB is likely to respond positively
Binance cryptocurrency exchange has crossed $1 billion in cumulative profit as of September 30, 2019. The firm’s “keeping barriers to entry low” mantra seems to pay dividends.
Binance reported in an official blog post it also completed its ninth quarterly burn of its native Binance Coin (BNB). The firm’s CEO Changpeng Zhao (CZ) stated in the post that the burn involved 2,061,888 BNB tokens worth nearly $36.7 million, representing 20 percent of the company’s quarterly profit. The USD value of Q3 burn is nearly the same as the value of Q2 and Q1 burns combined. In Q2, Binance burned 808,888 BNB tokens, while in Q1, it burned 829,888 tokens, totaling to 1,638,776 tokens.
A Whopping $1 Billion
The world’s leading cryptocurrency exchange by volume burns BNB tokens worth 20 percent of its profits quarterly. Having burned $36.7 million worth of tokens during the third quarter, it, therefore, adds up that the firm made approximately $183.5 million in profit in Q3 alone. When you consider the fact that there have been nine burns to date, the cumulative profit has crossed a whopping $1 billion-mark.
Binance cryptocurrency exchange was founded by Changpeng Zhao and Yi He and in its practice, it combines finance and the digital economy. The company offers its users access to exchange digital currency pairs on the market while maintaining security, liquidity, enabling a safe and efficient deal with anyone, anytime and anywhere. The firm has launched at least 20 new offerings in the second half of this year alone, with the announcements largely centering on three themes – venturing in China, the U.S. and expanding into the derivatives space.
Continue To Hunker Down and BUIDL
Last month Binance unveiled futures trading platform and the firm’s CEO announced then that their platform was already at the second position in the market by trading volumes fast on the heels of BitMex. Changpeng Zhao stated then:
“Binance Futures has already recorded higher volumes than the Binance spot market, less than one month after its launch […] we expect their [Binance Futures’] contributions to kick in for Q4, along with our newest services such as P2P trading […] our direction for Binance has always been clear. […] we will continue to hunker down, and BUIDL.”
While the prices of leading cryptocurrencies have been tottering in the last three months, it appears like Binance seems to be doing well and made good money in the process. Since token prices usually increase when supply goes down, it seems likely that the price of BNB will react positively to the news.