With a plethora of centralized platforms biting the dust, the community has been treading in fear. Amidst this, the need for transparency is being highlighted. Binance has been in the crypto business for quite some time. The exchange’s CEO Changpeng Zhao was seen upholding transparency by revealing the means of Binance’s revenue.
Appearing in an interview with TechCrunch, CZ addressed an array of things. Since this interview was conducted right around the time FTX collapsed, details of clarity around centralized exchanges were being demanded. CZ affirmed that the exchange’s financial position was quite healthy.
Diving further deep into it, the Binance CEO revealed that the exchange generates 90 percent of its revenue from transaction fees. It should be noted that these fees changes based on the price of Bitcoin. However, this isn’t the only source of income or profit for the exchange. This included CoinMarketCap that the platform acquired back in 2020.
Elaborating on how Binance would be able to bring in more profits, CZ further added,
“We removed all ads so there are no banners, no pop-ups, it’s a much cleaner experience. We can turn that back on, that’ll give us $40 million a year. But we don’t need to today, we have many products we provide for free just to increase the speed of adoption. But if we want to monetize those, we could.”
Will Binance attain monopoly over the crypto market?
After the fall of FTX, Binance has more space for itself in the market. It was recently revealed that Binance entails 75 percent of all exchange volume.
At press time, the daily trading volume of Binance stood at $11,530,911,449.76 with a 5.83 percent surge. The platform topped the list of spot exchanges. Coinbase took over second place. However, the disparity between the trading volume of these exchanges was quite high.
Additionally, at the phase at which Binance is moving forward, it could soon take over the crypto town.