Changpeng Zhao, the CEO of Binance, one of the largest cryptocurrency exchanges in the market, informed that they have invested 25% of its profits in 2019. This shows the company is continuously searching for new opportunities in the cryptocurrency market. Mr. Zhao said this during an interview he gave to the South China Morning Post.
Binance Exchange Invests For The Long Term
Since being released in 2017, the Binance cryptocurrency exchange has always been innovating and growing. Indeed, the platform was able to compete against old and established exchanges such as Coinbase, Bittrex, Bitstamp, Kraken and many others. Moreover, the firm was established during the Initial Coin Offering (ICO) boom in 2017.
Binance has also decided to acquire several firms in order to offer better services to users. For example, they have acquired WazirX, a recognized Indian exchange, and CoinMarketCap, one of the largest crypto data sites in the world.
Regarding the investment strategy they have to invest 25% of their profits, Zhao mentioned:
“We usually spend about a quarter of our profit on investment opportunities every year.”
He has also stated that they are looking to expand their services and start offering more than just trading solutions to users. For example, Binance is now allowing users to store their digital currencies and earn interest on them.
In addition to it, the exchange is doing everything as possible to welcome new users onboard. This is why they have invested in a wide range of fiat gateways that would allow individuals to make purchases with credit cards in a wide range of jurisdictions.
The firm could be investing over $100 million per year considering they have registered a $550 million figure in profits last year.
Binance has also launched its futures solution that allows traders to exchange cryptocurrencies with up to 125x leverage. Due to the high number of users that they were able to attract, the company and the exchange is now…