A quarter of the profits of one of the major cryptocurrency firms-Binance goes into investment says Changpeng Zao, often known as CZ, CEO of Binance.
Zao said,” We usually spend about a quarter of our profit on investment opportunities every year.”
The statement he made stressed on the fact that Binance is currently looking to grow its portfolio of businesses “beyond just trading.”Following the statement, Binance completed several recent high-profile acquisitions which include crypto data site CoinMarketCap and Indian crypto exchange WazirX.
About 25% of the firm’s profits are roughly estimated to be invested in expansions and acquisitions, CZ said in an interview with South China Morning Post.
In 2019, Binance is said to have made a profit of $550 million dollars roughly followed by an investment of nine digits.
High profile acquisitions and Binance.
Currently, the exchange is supporting crypto purchases with credit cards in over 50 administrations. This is possible only because the exchange has managed to expand its gateways vigorously in recent months.
Indian cryptocurrency exchange WazirX was acquired by Binance last year in November in order to launch a fiat gateway for cryptocurrency purchases in Indian rupees. The decision of the acquisition was right on time as India’s Supreme Court lifted the ban on banks providing financial services to crypto businesses a few months later.
Binance also acquired the popular market data provider and long-term crypto mainstay CoinMarketCap at the start of April for $400 million.
Zao further added that Binance is interested in exchanges that already have a banking relationship that exists which will allow them to accept trading in local fiat currencies.
Binance Vs Bitmex
Binance has also a 125x futures platform in addition to the Fiat gateways.
Even though there was a volume collapsing during the March 12–13 crash on Binance’s futures exchange, open interest has managed to recover to the platform’s pre-crash levels.
Binance, even though, a newcomer in the derivatives sector, has managed to capture a notable market share within a less amount of time with BitMex for the title of the top platform by volume.