Binance, arguably the largest cryptocurrency platform in the industry, could reportedly be worth north of $300 billion if it were a publicly-traded company. According to the exchange’s insiders, the fees collected from trading activity and other services generate enough revenue to support the massive market capitalization.
Key takeaways:
- Last Thursday, the Wall Street Journal reported that the fees generated by Binance’s diverse portfolio of cryptocurrency products and services are big enough to support the $300 billion valuation.
- Binance’s hypothetical market capitalization would rank it as the 30th largest company in the world, ahead of entertainment giant Walt Disney and medical conglomerate Pfizer.
- Binance regularly clears over $30 billion in daily spot trading activity and up to $80 billion in day-to-day derivates transactions. Binance is unquestionably the top dog in the crypto industry, regularly outperforming second-placed exchanges by over double the amount of 24-hour trading volume.
- In July, the CEO of Binance Chanpeng “CZ” Zhao recently stated that Binance.US, the US arm of the international exchange giant, is considering going public within the next three years. However, there are no current plans for a Binance IPO.
- Earlier this year, Coinbase became the first cryptocurrency exchange to go public in the US, boasting an initial market capitalization of $85.8 billion. For reference, Coinbase processed $6.8B of spot trades in the last 24 hours, while Binance processed $29.1B, according to data collected by Coincodex.
- After facing increased regulatory scrutiny over the course of the last couple of months, Binance has recently made a concerted effort to play nice with the regulators. You can check out this helpful article that recaps new measures the world’s biggest crypto exchange took in its pivot towards proactive compliance.
