Crypto Exchanges Bagging Billions Despite Market Downtrend

It’s no longer news that the cryptocurrency market has been struggling since Q2, 2018. Consequently, the market has lost over 75% of its value from its ATH in January 2018. Despite this lachrymose situation, many crypto exchanges have bagged billions of dollars in revenue. One may wonder how that’s possible. So, which crypto exchanges are making the revenue?

The Crypto Exchanges – Crushing It

Indeed, this could be an enigma to many cryptocurrency pundits out there, but it is so true. Sure, in the face of a tumbling market, many crypto exchanges are laughing. Looking at the crypto exchanges topping the gainers chart, Coinbase takes a conspicuous position with an annual revenue projection of $1.3B USD. In September, Coinbase raised $8B USD in valuation, making it one of the world’s most profitable startups. Apparently, this crypto exchange is just getting started as this year’s valuation is five times higher than that of 2017. One may wonder how the exchange plans to make the revenue. Basically, the projected revenue will come from trading commissions. In addition to trading fees, companies’ crypto holdings are expected to significantly ramp up Coinbase earnings.

Binance also made the List

Understandably, Coinbase is not the only crypto exchange basking in the euphoria of bountiful harvests. Yes, the world’s largest crypto exchange, Binance, also made the big earners list. Binance pegged its revenue trajectory at $7.5M USD in Q1, 2018 and $200M USD in Q2.

Changpeng Zhao, Binance’s CEO, posted the figures himself on his LinkedIn page. On the Q3 2018 revenue projection, the chief executive pointed out that they are still on it. In the post, Zhao noted that any country that is attractive enough to encourage Binance to open a branch over there will earn huge taxes from Binance.

Are the Crypto Exchanges taking Everything?

Aside from Coinbase and Binance, South Korea’s Upbit and Bithumb are other crypto exchanges gaining a lot from the market. Indeed, the two crypto exchanges reportedly made over $100M USD in Q1 2018.

According to Toshi Times, Coinbase has negotiated for an $8B valuation, making it by far the most valued startup in the United States. The revenue comes from commissions and transaction fees.

According to Bloomberg’s Julie Verhage, Coinbase made $1.3B from commissions and trades in 2018. She noted that part of the revenue came from gains and losses in cryptocurrency holdings. Verhage added that the exact figures could vary, given that Coinbase looks at various internal revenue measures.

Risk Disclosure

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