Binance Officially Made Over $500 Million Profit In Their First Year Of Trading!

The Binance cryptocurrency exchange has now been live for 12 months. They launched almost exactly a year ago in July 2017 and it’s been quite the year. They’ve become the global leaders in cryptocurrency exchanges for trading volume in less than 12 months.

There are many contributing factors to Binances’s rapid rise to success. They leap frogged into the lead during the period of closed user registration on other exchanges such as Bittrex, and now there’s no slowing them down.

Even amid a court case which saw founder Changpeng Zhao almost sued, the company was still announcing new and exciting developments for now and the near future.

They are the first cryptocurrency exchange to allow users to convert dust to BNB. They also recently announced the development of a new decentralized cryptocurrency exchange which will run on their own custom built blockchain called Binance chain.
What is the Binance Coin burn and how can we use it to work out the first year profits?
Binance have a quarterly coin burn whereby they use 20% of the profits in that quarter to buy back BNB. The BNB is then burned and eliminated from the supply which they do in order to increase the value of the token as an incentive for Binance Coin holders.

Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.

Because Binance burn 20% of their profits each quarter, we can deduce the rough amount of profit they made in each one. If we take the amount of BNB burned in each quarter and multiply that figure by the token price at the time of the burn, we can calculate the cost of the buy back for that quarter.

We can then multiply this figure by 5 which gives us the total amount of profit.

Because they’ve just announced the fourth quarter Binance Coin burn amount, we can now accurately calculate Binance’s first year profit.

Binance first year profit
1st Binance Coin Burn – October 2017

986,000 BNB burned – Token price = $0.112 – Profit for Q1 = $552,160

2nd Binance Coin Burn

1,821,586 BNB burned – Token price = $21.99 – Profit for Q2 = $200,283,381

3rd Binance Coin Burn

2,220,314 BNB burned – Token price = $148,983,069 – Profit for Q3 = $148,983,069

4th Binance Coin Burn

2,528,767 BNB burned – Token price = $11.98 – Profit for Q4 = $151,473,143

Total Binance first year Profit
$501,291,753!
Half a Billion USD profit in just 12 months of trading is simply outstanding.

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