Binance CEO Zhao Changpeng Expects Up to $1 Billion Profit for 2018

Avi Rosten

The world’s leading cryptocurrency exchange - Binance - expects net profits to reach up to $1 billion this year according to founder and CEO Zhao Changpeng.

Talking today to Bloomberg, the Chinese billionaire was confident about the exchange’s profitabiity for this year, after he said the company recorded a $300 million revenue for the first half of 2018.

Expecting total net profits for the year to be between $500 million and $1 billion, Binance is now back at the top of the exchange volume rankings - processing over $1.2bn of trades in the last 24-hours - following several days where it was knocked off the top spot by the new “trans-fee mining” exchanges.

Offering compensation for most or all of a user’s cryptocurrency fees in the exchanges own tokens, these new platforms such as CoinEx and Coinbene have enjoyed astonishingly high 24-hour trading volumes - often over $2bn.

Overcoming Challenges

With Changpeng highly critical of this new model of exchange revenue, this latest incursion into Binance’s territory has not been the only problem for the world-leader of late.

Earlier this week the exchange had to halt trading after very suspicious activity surrounding Syscoin (SYS) on its platform. With the lesser-known coin experiencing huge jumps in price - at one point being bought for 96 BTC (around $640,000 at the time) per coin - the exchange was forced to stop trading.

Binance have since responded to the incident by launching a security fund - the Secure Asset Fund for Users (SAFU) - and will allocate 10% of trading funds to protect users from such extreme situations on the exchange.

With many in the crypto industry looking to Binance as the industry leader, Changpeng’s forecasts today make it clear the company does not consider these latest developments to be long-term challenges. 

$3.1 million: Crypto Exchange Cashaa Hacked for 336 BTC

London-based cryptocurrency exchange Cashaa revealed it lost 336 bitcoin, at press time worth $3.1 million, to hackers who managed to access one of its cryptocurrency wallets.

According to a tweet the exchange published on July 11, the attackers managed to access one of its wallets, and quickly transferred the funds to an address they control. From the address they went to the BTC has been through a series of hops, suggesting the use of coin mixing software to limit traceability and throw off blockchain sleuths.

Cashaa believes that the attacker may have managed to infect one of its computers with malware, and then waited for an employee to access its machine. As soon as that happened, the funds were moved out of its wallet. Reacting to the security breach, the exchange halted withdrawals and deposits and “called the board meeting to decide whether the company will bear all the losses.”

The exchange suspects the hacker is from east Delhi, India, and filed a report with the Delhi police cybercrimes department.

Cashaa also reached out to other cryptocurrency exchanges and businesses informing them of the address, in a bid to stop the hacker from cashing out. In statements provided to industry media Kumar Gaurav, Cashaa’s CEO, seemingly lashed out at trading platforms that allow hackers to cash out.

Gaurav was quoted as saying:

As of today, hackers are very confident to hack crypto addresses and move it through exchanges that are facilitating such laundering through their systems. Exchanges like these must be shut down and owners of these exchanges should be charged with money laundering facilitation crime.

CryptoCompare’s Exchange Benchmark report, as recently reported, revealed that 38% of crypto exchanges interact with high-risk entities in 25% or more of their transactions. High-risk entities are those associated with darknet markets and vendors, criminals, gambling projects, malware operators, and others.

Featured image by Kevin Ku on Unsplash