Crypto Exchanges are Raking in Billions in Revenue Despite Market Struggles
Coinbase, the largest fiat-to-crypto exchange in the global market, is set to bring in over $1.3 billion in yearly revenue by the end of 2018.
Binance, the go-to crypto exchange for digital asset traders, recorded a profit of $200 million in January, nearing that of Germany’s biggest financial institution Deutsche Bank.
Upbit and Bithumb, two of the largest exchanges in South Korea, have reportedly been recording a monthly revenue of $100 million in early 2018 mainly from transaction and withdrawal fees.
In January, Yoojjin Investment researcher Jung Yoon-ho told local publications that considering the $2.5 billion in user funds that are actively traded on the platform, and the average transaction fee is 1 percent, Jung said that Bithumb generated $2.5 million in daily revenue earlier this year.
However, due to the bear market and the decline in trust towards crypto exchanges by investors in South Korea due to the two consecutive security breaches of Bithumb, experts predict that the monthly revenues of major crypto exchanges in South Korea have dropped from $100 million to around $60 to $70 million in the past 10 months.
