With falling markets and values down, late investors may have lost a bit of money to crypto this year. Moreover, those who held in the boom might be regretting their decision based on today’s prices. Companies that are driving the cryptocurrency revolution like Binance however, are starting to report big profits, not everyone is losing out from the falling markets it seems.
Decentralisation does mean that overall, middle-man companies like exchanges shouldn’t be making huge profits from our trades, however, capitalism dictates that in order for these exchanges to succeed, they need to make profits to be able to afford to run. It’s a bit of a paradox but really, there’s nothing we can do about it.
According to reports out today, Binance had a first half revenue (for 2018) of $300 Million, despite currencies like Bitcoin losing 52% of its value so far this year. Moreover, with these figures in mind, Binance are projecting a full year revenue of up to $1 Billion by the end of 2018, even with the current market projections in mind.
Perhaps we need to stop investing in cryptocurrencies, and we should just start working for exchanges hey?
This sort of news is hardly shocking overall. In order for Binance to succeed they need to make the most of the markets to generate the highest income possible. Through this, they are becoming the most notorious cryptocurrency exchange in the world and are very much succeeding in their field. It does hurt investors to think that exchanges are profiting from their hard earned cash and well thought investments though.
Is there anything we can do to stop big companies profiting from our trades?
When we use large exchanges like Binance, we are given an element of quality in knowing that our trades will be managed well and above all, will remain secure. We could always switch to using a smaller exchange that may not receive as much profit from your exchanges but often in these instances we could be putting our assets at risk, due to different security protocols. As Uncle Ben once said, ‘With great power, comes great responsibility’, right.
We trade off fee’s and our own profits, for the comfort and certainty provided by established companies like Binance.
It’s a cliché, but you get what you pay for.