Altcoin News: Binance With the Second Most Profitable Quarter in Its History
October 17, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
The Binance cryptocurrency exchange this morning reported on the completion of the ninth quarterly burning of its BNB tokens. According to an official statement, 2,061,888 BNBs totaling $36.7 million were destroyed.
As The Block analyst Larry Chermak notes, this amount exceeds the figures for the second and third quarters combined. Since the volume of tokens allocated for burning is equivalent to 20% of Binance’s profits for the specified quarter, it can be estimated that in the third quarter its profit amounted to about $186 million, that is turned out to be the second most successful quarter in the history of the exchange.
According to the Binance plan, it should burn BNB quarterly until it withdraws 100 million tokens from circulation. For nine quarters, they managed to destroy 14.5 million BNB, and another 85.5 million remained.
Binance’s total profit with this exceeded $1 billion.
The performance of the third quarter came as a surprise, Chermak notes. Trading volumes in the spot market have declined in recent months. The market did not show activity, and nevertheless, the exchange managed to burn the equivalent of the second-best quarter since its opening.
This trend is even more obvious when looking at the average daily trading volume. In October, it was 2.6 times less than in June, from which we can conclude that Binance began to earn much more in other areas of its business, such as futures and over-the-counter trading in China.
This assumption is also confirmed by CEO Binance Changpen Zhao:
“Key contributing factors to this growth include new services like Margin trading, an increased number of fiat on-ramps to make purchasing cryptocurrencies more accessible, and a multitude of other services we introduced that are beginning to bear fruit. In addition, we launched a number of key services in Q3 that we are still building up, namely Futures trading. We expect their contributions to kick in for Q4, along with our newest services such as P2P trading.”
Also today it became known that the American division of Binance will conduct a listing of cryptocurrencies Algorand (ALGO) and Zcash (ZEC).
On Wednesday, Binance revealed the details of the next IEO on its Binance Launchpad platform, which will be run by the Kava project.
Author: Marko Vidrih
Images credit: TheBlock
