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Q1 2018 Binance Profits Surpass Deutsche Bank, Near Nasdaq

Binance Pulled In $200M In Q1, While Deutsche Bank Brought In $146M

To be frank, there isn’t too much of a comparison between the crypto industry and legacy capital markets, but on the exchange side of things, maybe this isn’t the case, with Binance’s Q1 2018 profits reportedly surpassing Deutsche Bank’s and nearing Nasdaq’s.

On Thursday, Dovey Wan, managing director of DanHua Capital and a crypto investor, took to Twitter to provide an interesting point of insight into the crypto industry, noting that Binance outperforming Deutsche Bank in Q1 of this year.

Backing this seemingly outrageous claim, Wan posted an image, which gave a short, yet sweet side-by-side comparison of the two firms. Deutsche Bank, which has been one of Europe’s foremost financial institutions for more than a century, pulled in a sizable profit of $146 million in Q1 2018 after giving salary to over 100,000 employees and fulfilling its operating costs. On the other hand, Binance, which was founded only in July 2017, raked in $200 million after its operational margin, topping Deutsche profits by 35%.

However, her comment’s quickly sparked some conflict within the Twitter thread, with some noting that this is more of an “apples to oranges” comparison, as both of the firms operate with an entirely different structure in separate industries.

Acknowledging this, the DanHua executive went on to make a better comparison, trying to make it more “apples to apples.” This time, she contrasted Binance and the Nasdaq capital markets exchange, revealing that Binance’s Q1 profits were ‘only’ $9 million shy of Nasdaq’s, even with the crypto exchange’s relatively small team.

While this by no means shows that crypto is surpassing traditional markets, Wan indicated that these statistics show that decentralized technologies and markets hold “disruptive potential,” writing:

Yes, there is nuance in compliance cost etc, the comparison mainly tries to illustrate an industry with exponential growth + disruptive potential. If AMZN can be accessible outside NASDAQ, why chinese investor has to pay super high P/E for local s***? Liquidity brings optionality.

Binance Rakes In Millions In Profit, Even Amidst A Bear Market

As per a previous Ethereum World News report, Binance’s CEO expects for his firm to pull in $1 billion in profits for all of 2018, even amidst a bearish market that has plagued investors since January’s all-time highs. This substantial profit figure could be attributed to the firm’s rapidly pudding user base, along with near-consistent volume levels on its over 100 trading pairs.

According to Zhao, his company has now supported over ten million customers, generating an average of $1.5 billion in trade volume each and every day. To give the user base figure a bit of perspective, Binance only had two million users at the start of 2017.

Some skeptics reasoned that the only reason why Binance could pull in such a profit is due to the suspected exorbitant listing fees requested by the exchange. As covered in early August, an ‘official’ email from Binance claimed that a fee of over $2 million should be paid for listing on the popular exchange. While this claim has since been rebutted by CEO Changpeng Zhao, many speculate that this could be the source of a good portion of the startup’s profits.

Regardless, Binance doesn’t seem to be the only firm ‘rolling in the dough’, even as the retail market all but dries up. With BitMEX, the world’s most popular Bitcoin mercantile exchange, recently ‘making it big’ with a move into one of the most expensive office towers in the world. As reported by Ethereum World News last week, the exchange, which has become well-known for offering margin trading, will pay over $570,000 a month in rent for just one of its offices, showing that the firm still has some cash to spend.

Photo by Jakub Gorajek on Unsplash
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Binance Introduces Blockchain Incubator To Bolster Crypto Startups

Even amidst falling prices and mixed investor sentiment, Binance, the world’s largest exchange, has trudged forward, recently launching an in-house incubation program for early-stage crypto and blockchain ventures.

This most recent announcement comes on the back of the firm’s move to launch a $1 billion venture capital fund in early-June, as reported by Ethereum World News previously. While the incubator was Exchanging Cryptocurrenciesalluded to in June, Binance has finally come out to release the details regarding this new venture, which will see the cryptocurrency platform “support top-early stage teams with the best resources.” According to TechCrunch, Binance Labs CEO Ella Zhang noted that the incubation program is planning to take on eight to ten companies “per batch” for a 10-week tenure.

So what will the incubation program entail? You may ask.

Well, as per the official Binance announcement, the program will provide its ‘incubatees’ with $500,000 in seed funding in exchange for a 10% stake in the startup. If the program keeps up with its planned eight to ten projects every 10-weeks, that means that Binance will be forking out at least $4 million nearly every two months. It remains to be seen whether this seed investment will take the form of fiat or crypto, however. Along with an investment, Binance Labs intends to provide the projects is chooses with mentorship, networking and support services, as alluded to in the following list:

  • Seed Investment: We provide $500K Seed Funding (10% Equity). This allows startups to bootstrap as soon as possible.
  • Mentorship: We have best mentors from both crypto and startup scenes who will support startups’ journey.
  • Network: We help startups grow their network with notable founders coming every week, and of course the batch network will become the biggest assets.
  • Support Services: We provide the best resources so startups can focus on building products/services.

The maiden program is reportedly set to begin on October 9th in San Francisco, with the sign-up deadline being September 14th for companies looking to take part in the incubation process. Following the 10-week period, the program will close with a “BUDILer Day,” which will be an opportunity for the startups to show off what they have created to an audience of prospective investors, media outlets, and industry leaders.

Zhang added that the incubator will do its best to provide support for projects focused on “public chain scalability, security, decentralized exchanges, wallets, custody, payment, coin stability, compliance, decentralized apps, gaming, virtual goods and more.” The Binance Labs CEO noted that ideal candidates for the program would be a project that has taken upon any investors yet, as Binance is looking to take a spot as the first third-party investment into a venture.

While this program is starting out of San Francisco, Binance intends to expand its border eventually and may move into other prominent cities in Africa, Asia, and Europe if the need arises.

A Symbiotic Relationship — Binance Labs And Its ‘Incubatees’

As alluded to by TechCrunch’s interview with Binance Labs CEO Zhang, the incubation process is meant to be as symbiotic as possible — where the two ends of the process can both benefit and grow from a partnership. As Christy Choi, Binance Labs director put it, the $500,000 check is meant to “facilitate” the founders by helping them to develop a successful product or service, rather than having to go through the tedious task of running a business, which should only help the firm in the long run.

Following the incubation process, Zhang added that Binance Labs’ venture fund will have “follow-on” investment opportunities to help facilitate a long-term relationship between the cryptocurrency giant and the former-incubatees.

Photo by Danielle MacInnes on Unsplash

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Binance Reveals Liechtenstein-Based Fiat-To-Crypto Exchange

In a recent move, Binance has partnered with Liechtenstein Cryptoassets Exchange (LCX) to launch a partnership fittingly named Binance LCX. As per a press release posted on August 16th, the collaboration between the two entities will be launching a fiat-to-crypto portal in Liechtenstein. 

Binance’s “experienced team” will take a key role in providing and maintaining the exchange infrastructure, while Binance LCX will take the reins for customer support, legal compliance and due diligence, KYC, AML and communication with local governmental figures/regulatory bodies. The entity spawned as a result of the partnership intends to build a team of 10 to 15 individuals to support the exchange and will be situated at its Liechtenstein office.

The fiat-to-crypto exchange will offer support for Swiss Francs (CHF) and Euros (EUR), coupled with “major cryptocurrency pairs.” While the two firms have not released an extensive list of pairs, it is widely speculated that the new exchange will support BTC, ETH, and XRP at the bare minimum. The latter cryptocurrency noted may be a surprise to some, as the regulatory state of this asset is still up in the air. However, recent tweets from Michael Arrington, an XRP proponent and the co-founder of TechCrunch, and Binance CEO Changpeng Zhao have led some to believe that XRP/EUR and XRP/CHF support is likely.

The newly-established firm also noted that it will add more trading pairs as time moves on, with planned pairs being subject to regulatory approval/disapproval. Changpeng Zhao, or CZ as he is better known by the cryptocurrency community expressed his excitement for this venture, stating:

I believe Binance LCX will create a sustainable and reliable fiat-crypto gateway for professional and regular investors alike. I hope Binance LCX will drive new standards for usability and compliance for the blockchain industry, and we are very excited to bring the relevant experience and best practices to grow our team in Liechtenstein

In a similar comment, LCX CEO Monty Metzger, the primary executive at the other end of the partnership, also added that his firm is thrilled to join hands with Binance in this move. While many governments are hesitant to openly endorse cryptocurrency-related companies, individuals or ventures, Liechtenstein’s Prime Minister issued a welcoming statement and even made an appearance at the grand unveiling of the Binance LCX office.

Liechtenstein has quickly proven itself to be a “crypto haven,” with the regulatory environment surrounding this nascent asset class being rather lax. The small European country has begun to see a large influx of crypto-related companies, as some projects seek crypto-friendly banking relationships. Taking this into account, it is clear to see why LCX wrote that “Liechtenstein is the ideal location” for this new exchange.

As reported by Ethereum World News previously, Binance made a similar announcement in June, launching its first fiat-to-crypto exchange in Uganda. So although the global roll-out may be slow, it has become apparent that Binance is ready to tackle the lack of fiat support in exchanges worldwide with its own platforms.

Photo by Henrique Ferreira on Unsplash

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The Listing Fee Debates Continues, As Binance CEO Says “We Don’t List S***coins”

400 BTC. That’s apparently how much Christopher Franko, the Expanse project’s co-founder, was told to pay by Binance employees to secure a spot on the world’s most popular crypto-to-crypto exchange. As it stands, 400 BTC is worth approximately $2.5 million, making such an exorbitant listing fee out of the reach of many bona fide cryptocurrency projects.

Image courtesy of @frankocurrency on Twitter

However, according to a recent tweet storm from Changpeng Zhao, the CEO of Binance, this is far from the truth. On Saturday morning, the Binance executive, better known as CZ to the cryptocurrency community, drew attention to the claimant’s evidence of an email from “[email protected]” quoting the aforementioned fee. According to Zhao, “the email Franko showed is a spoofed/spam email, not from Binance,” which implies that an innovative, yet conniving individual found a way to disguise his/her/their email as if it was from an official Binance address.

Although it remains to be seen whether CZ’s claim of spoofing is accurate, he went on to note that the fact that Franko wasn’t able to spot the “spoofed” email might reflect badly on the project. Adding more to this sentiment, the Binance executive wrote:

“We don’t list s***coins even if they pay 400 or 4,000 BTC. ETH/NEO/XRP/EOS/XMR/LTC/more were listed with no fee (paid). Question is not “how much does Binance charge to list?” but “is my coin good enough?” It’s not the fee, it’s your project! Focus on your own project!”

Although not explicitly stated, this statement alludes to the fact that Binance charged a high fee due to the quality (or lack thereof) the exchange’s staff team sees in the Expanse project.

The Community Questions CZ’s Rebuttal

However, upon the release of these tweets, Zhao fell under fire from skeptical community members. One user, going by @danielcpigeon, questioned the legitimacy and bias of Binance’s listing process that has kept behind closed doors.

Another Twitter user doubled down on this sentiment, noting that the way in which people evaluate a cryptocurrency project varies widely from person to person, so how can Binance ensure its methods are in-line with the community?

Even Christopher Franko, the aforementioned Expanse executive, had something to say in response to CZ’s rebuttal. While Franko issued dozens of tweets regarding the subject, there were a few that stood out and goes to show his opinion on the matter.

At first, the Expanse representative remained cordial, inviting CZ to speak with him through DMs to clear up the fee, writing:

“Ok, if you are being genuine that it really doesnt cost 400 BTC to list there, then send me a DM with a real quote so we can clear this up. I believe you are probably an honorable person and the people want to know you are who you say you are.”

But as time went on, and seemingly no progress was made, Franko began to show his warranted anger and frustration through a series of impassioned tweets against Binance’s listing fee practice. It remains to be seen whether Binance representatives will respond to this expose attempt.

But for now, this debacle might have ended, as Franko noted that Changpeng had blocked him on Twitter, putting an end to the back and forth talk that was likely going on between the representatives of the two entities.

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Binance “Sneak Peeks” In-House Decentralized Exchange

Binance Grinds Out Pre-Alpha Decentralized Exchange

World-class cryptocurrency platform Binance has been hard at work on its in-house decentralized exchange platform for months now.

While no product was expected this early, Binance’s team has been hard at work, recently releasing a “sneak peek” of a pre-alpha version of the platform, which will be an essential part of Binance Chain.

On Thursday morning, Changpeng Zhao, Binance’s CEO and an industry golden child, took to Twitter to release a short (but sweet) demo of an early-stage development iteration of Binance’s planned decentralized exchange (DEX).

Opening off the sneak peek video, Zhao, or CZ as he is known by the crypto community, told his viewers not “to expect too much,” as this is a “casual, rough and pre-alpha” demo that has no graphical user interface (GUI) to speak of, for now, that is.

In the six-minute video, a Binance developer showed off three essential features that will be an integral part of the fully-fledged platform, these being the creation, listing, and trading of tokens. From what was seen, it seems that all seems to be working according to plan. But until Binance releases a version available for public consumption, it remains to be seen whether the DEX can handle an influx of volume and users.

Closing off the “casual and early demo,” Zhao noted:

“There is still tons of work to be done to turn it into a final product. The team is working on it very aggressively. Nevertheless, I think that this is a major milestone for Binance Chain and we’ll keep you guys up to date from time to time.”

While this may look like nothing much on the surface, CZ sees this as “a small step for Binance Chain, (but) a big step for Binance.”

In an interview with CNBC Africa’s Ran NeuNer, who hosts the Crypto Trader show, Binance’s CEO added that he isn’t 100% sure when the official release of the DEX will occur. As CZ puts it, “it could be one year, two years, three years, or five years. I don’t even know.”

Decentralized Exchanges — The Future For This Industry

Many see decentralized exchanges as the next step for this industry, as many investors have begun resisting the restraints put upon them by centralized exchanges. For those who are unaware, decentralized exchanges remove a centralized intermediary, allowing its users to trade crypto to each other directly, removing the need for an asset to be routed through an exchange-owned wallet.

Not only does this reduce the risk of a hack, but it is also censorship-resistant and can be available worldwide for any user that may be seeking its services.

However, some have their doubts, with some skeptics bringing up the recent hack of the Bancor DEX, where a smart contract was hacked and over $30 million in funds were stolen. While none of these funds were owned by consumers, critics brought up the fact that Bancor was able to freeze BNT tokens through a back-door, “emergency” function, which negates the purpose of decentralization.

Hopefully, Binance will address all the current concerns about decentralized exchanges and will create a platform accessible to a worldwide audience.

Photo by Luca Bravo on Unsplash

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Binance Buys Trust Wallet, Aims To Expand Operations

Despite posting losses of a couple of percent, development in the cryptocurrency industry has trudged forward, with Binance just announcing that they had acquired Trust Wallet in a recent deal.

Binance, the world’s largest crypto platform, has just made its first acquisition, buying out a Calfornia-based cryptocurrency wallet startup. Trust Wallet provides a reliable security solution for users, along with facilitating a so-called decentralized application browser. Unlike other mobile-based wallets, Trust allows users to “control 100 percent of their funds,” not holding the private keys or other confidential information on their servers. In fact, all of the information that will be stored on company-owned servers is just the user’s public addresses, contact information, and social media handles.

According to Bloomberg, the wallet provider was launched in November and is currently home to 10 employees. The Trust Wallet application is currently focused on providing security for Ethereum-based tokens, and supports upwards of 20,000 different cryptos as of the time of writing.

Speaking on the acquisition, Chengpeng Zhao, the well-known CEO and head of the exchange, stated:

“The Trust Wallet team shares the same values as us and the products are very complementary. For users who like to withdraw funds into a wallet now, we have a product they can use.”

The details of the deal were not revealed, but the firm noted that they acquired the startup using a combination of cash, Binance stock and some of its in-house token, the fittingly named Binance Coin. But it was noted that the deal was not of a high value, as the crypto service provider currently doesn’t support an expansive user base.

It is important to note that Trust Wallet will still operate as an independent entity, but the Malta-based Binance will assist in operating the “admin side of the business,” along with market campaigns. Zhao noted:

We plan to keep the app as independent as possible. There will be more features going into it but not so much from a Binance demand perspective. We are like the addition of a godfather for the baby… there’ll be some cooperation.

The CEO took to Twitter to issue a series of tweets, expressing his excitement for the deal which they had just closed. CZ wrote:

“A secure, easy to use, on-chain mobile wallet with full dapp support. The next gen mobile wallet begins.”

He also called it a “diamond in the rough,” alluding to the firm’s plans to expand and integrate the wallet solution into Binance’s services. It is likely that Trust will be the first to be integrated into Binance’s upcoming decentralized exchange, which will allow users to directly transact with one another through a permissionless system.

Closing off his talk with Bloomberg reporters, the CEO added that his firm is in “early-stage talks” with other firms that appeal to the Binance team for future acquisition. Taking into account that Binance made upwards of $500 million since the start of 2018, it makes sense how they have so much capital to spare.

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Crypto And Charity: Binance Contributes $1 Million To Aid Japanese Flood Victims

Binance, the world’s largest exchange, has committed to an act of philanthropy, with this coming in the form of donating $1 million U.S. to victims of the Japanese floods. The floods have already killed over one hundred civilians so far, with many speculating that there are still over fifty missing.

Shinzo Abe, Japanese PM stated:

We are working against time. There are still many people missing and others in need of help,

According to BBC, western Japan has been seeing record levels of rainfall, with some areas receiving as much rain they would see in months in only a few days. Japanese authorities have ordered over two million people to evacuate the affected area as water begins to run through the streets.

Chengpang Zhao, Binance’s CEO, took to Twitter to express condolences to the victims, he wrote:

Our hearts go out to the victims in West Japan. @binance will begin with a $1,000,000 USD equivalent donation in either BNB, BTC, or JPY.  We also ask our crypto partners to join us and help our friends in need.

CZ, as he is called by the crypto community, also encouraged others to make a donation to the cause, in the form of sending ETH or ERC-20 tokens to a specific address.

Binance’s CEO also noted that projects looking for a Binance listing may receive “bonus points” for future listing requests. Additionally, CZ went out to say that exchange might even count donations towards the reportedly exorbitant listing fee.

It is currently unclear what the exact logistic scheme of the donation plan will entail, but it was made clear that the Binance team is working on a viable way to deliver the funds in collaboration with “local authorities.”

Some found it odd that Binance only offered an Ethereum address for donations, but others thought that it only made sense, as a number of projects on Binance are Ethereum-based.

As of the time of press, the wallet given is filled with over 190 Ether, valued at over $95,000, along with over $1.04 million in a variety of ERC-20 tokens. With these donations, Binance has already surpassed its goal of $1 million, but many hope for the continued success of the charity campaign.

Crypto and Charity: Is It A Growing Theme?

Despite the tribalism and individuality of many cryptocurrency investors, influencers and projects, the charity space around this industry has grown tremendously

Brian Armstrong, CEO of Coinbase, stated in a Medium blog post:

Cryptocurrency has produced a handful of billionaires already, and I suspect it may produce the world’s first trillionaires in the next decade. The Forbes list of wealthiest people is going to be shaken up by early digital currency holders.

It would only make sense for influential cryptocurrency players to start making an impact on the philanthropy space. In a recent announcement, Armstrong mentioned that he will be starting the ‘GiveCrypto‘ charity, aimed at supporting the impoverished through cryptos.

The CEO noted that the power of using a crypto-backed charity fund lies in the substantial growth potential, increase in adoption rates and most importantly, the appeal of a technological world. The fund has already garnered over $5 million from a variety of high profile cryptocurrency players, including the CEO of Ripple, ZCash, and BitMEX.

In other news, the Pineapple Fund, started by a Bitcoin early adopter, recently cleaned out its fund pool, donating over 5104 Bitcoin to over sixty of honorable causes.

The anonymous founder of the Pineapple Fund wrote:

Pineapple Fund was an experiment in philanthropy with cryptocurrency wealth. What happens when your ‘play-money’ becomes a treasure chest, and you’re past the satiety point of money?

Many believe that the generosity that has been seen in the cryptocurrency space with continue, with charities like GiveCrypto, The Pineapple Fund, and the most recent Binance donation showing the willingness of the community to give and a lot at that.

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Top Exchange Binance Eyeing $1 Billion in Profits for 2018

CRYPTOCURRENCY EXCHANGES–Leading cryptocurrency exchange Binance is thriving despite 2018 seeing a massive downturn in pricing for cryptocurrency. As alluded to last month by Arthur Hayes, co-founder of exchange BitMex, the falling price of cryptocurrency has yet to dampen the growth most exchanges are seeing throughout 2018. While investors scramble to secure their funds and find profit in the bear market, exchanges continue to win through their model of trading fees and other miscellaneous charges such as for withdrawals. Compared to traditional brokers, such as E-Trade, Charles Schwab or other stock picker portals, the fees imposed on crypto-based transactions are minuscule, often costing users less than a quarter of a percent of the total value transferred.

Ben Delo, who founded BitMex alongside Arthur Hayes in 2014, made headlines earlier in the week when it was revealed by The Daily Mail that he had become the youngest self-made billionaire in Britain’s history, and the first “bitcoin billionaire” to emerge in the United Kingdom. Clearly, despite the tug-of-war capital flowing in and out of the industry of cryptocurrency, exchanges and their employees are managing to flourish in the uncertain landscape of the market.

Binance, currently ranked number one among cryptocurrency exchanges by daily trade volume, has told Bloomberg it expects to turn a profit of $500 million to $1 billion by the end of 2018. Despite the exchange facing significant technical difficulties throughout last week, which brought trading to a halt and raised the ever-present concern of a hack (and also gave investors the iconic response “funds are safu”), Binance CEO Changpeng Zhao told Bloomberg the company netted 300 million USD in revenue through the first half of the year, with the customer base growing past 10 million users.

While other exchanges such as Coinbase have boasted a higher customer base, Binance has managed unreal growth through the first year of its existence. Zhao founded the exchange in July 2017, after raising 15 million USD through an ICO. The company now experiences an avegrage turnover volume of 1.5 billion USD daily, with the customer base growing from a reported 2 million users to start the year.

Given the murky landscape of cryptocurrency exchanges, the lack of regulation and the potential for government crackdown in many countries around the world, the competition for trading platforms has been scant compared to the profit to be made. In addition, established exchanges such as U.S. based Coinbase have struggled to capitalize on demand, being accused by Business Insider of having insufficient resources to handle their customer load as well as a 134 pages of complaints filed with the SEC.

Compared to Coinbase, which offers four cryptocurrencies to buy and sell, Binance is a near-industry leader in cryptocurrency selection for trade. However, it suffers from the ease of use and accessibility that other mobile-based platforms provide to customers. As it stands, the average investor just getting into cryptocurrency will find some difficulty navigating to Binance, even if the registration process itself is fairly simplistic. But, that only reveals how much room the exchange has left to grow, and the untapped customer base it can expand into.

With the acceptance of cryptocurrency exchanges as banks and financial institutions in South Korea, and the looming possibility of regulation in a number of other countries, the landscape of exchanges could swell as companies and entrepreneurs look to capitalize on the massive trading profit.

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Here Is Why Binance Coin (BNB) Is The Coin To Have in 2018 and Beyond

The Binance Exchange ICO was a huge success to the point where one year later, the exchange flip flops between the number 1 and number 2 positions on coinmarketcap.com and according to daily trade volume. Right now, the exchange is at its usual number one position with $1.486 Billion in daily trade. Sometimes, this daily trade volume was as high as $2 Billion earlier on in the year. This is an amazing feat by the exchange.

The token that was key for the ICO and exchange was Binance Coin (BNB). According to the whitepaper, there would be 200 Million tokens created with 50% being offered to ICO participants. The amazing thing is that if BNB is used to pay for trading fees on the exchange, a discount is given to the trader according to the rates below.

Binance discount rates with time

So why is Binance Coin (BNB) such a good buy?

Firstly, and looking at the general market trend of the coin, it keepsgoing up. This can be seen in the one year chart below. To note is that the spike in the middle, is the time period between November 2017 and January 2018 when crypto trading had skyrocketed all over.

Secondly, the team at Binance does a BNB coin burn every quarter as part of the design of the exchange as illustrated in the whitepaper. Each quarter, the exchange uses 20% of its profits to buy back and burn BNB up until a total of 100 Million BNB are burnt. However, the exchange does not notify the users of a pending coin burn. It announces the coin burn after the fact to avoid some form of market manipulation in the crypto markets. This can be seen in announcement in January that stated the following.

Fellow Binancians,

In accordance with our whitepaper, we have now completed the burn of 1,821,586 BNB for the our 2nd quarter.

Thanks for your support!

Binance Team

2018/01/15

The current circulating supply stands at 114 Million BNB with a total supply of 194.972 Million. This means that the exchange has burnt some 5.028 Million BNB coins thus reducing the supply and consequently helping the value of BNB to go up as can be seen in the chart that was shared.

Thirdly, the exchange has plans of opening exchanges in both Uganda and Malta. This provides the exchange with a broader reach to attract new users who will in turn use BNB. With more users, comes more visibility for BNB and more trading. The trading generates profits for the exchange that will be used to buy back BNB to be burnt. This cycle will continue until there are only 100 Million BNB. This means the value of BNB will continue to inch closer to the Stratosphere! 

In a nutshell, the digital asset of BNB has everything good going for it. There is a structured coin burn; a strong team behind the crypto exchange; plans of expansion of the exchange; a proven track record of constant gains; as well as initiatives such as the 40% referral bonus for anyone with over 500 BNB in their Binance account.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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BitBay: Poland’s Largest Cryptocurrency Exchange Announces Move to Malta

Poland’s largest cryptocurrency exchange platform, BitBay announced on May 29 that it would cease operations in the country in favor of a move to Malta. The platform revealed the decision in a statement published on its website. BitBay blamed the increasing operational restrictions brought about by the refusal of banks to offer services to the firm as the reason for the move.

BitBay was established in 2014 in Katowice, Poland. The platform offers trading support for 29 digital currencies including Bitcoin, Ethereum, and Litecoin. The crypto exchange service has over 800,000 customers and facilitates an average of 125 transactions per minute. BitBay joins other platforms like Binance and OKEx in moving to the Mediterranean Island country.

Banks Withdraw Support for BitBay

According to BitBay, banks in the country refused to offer their services. As a result, the platform is forced to move its business elsewhere to continue servicing its customer base. A portion of the statement on the platform’s website reads:

The activity of the BitBay exchange in Poland requires cooperation with Polish bank. Unfortunately, the last Polish bank ready to provide bank services undertook unilateral decision to finish the cooperation with BitBay with the effect at the end of May. In those circumstances, the continuation of providing high-quality services by BitBay exchange in Poland is no longer possible.

In line with the move to Malta, BitBay has set a September 17 deadline for account holders to create their Malta BitBay account. After the deadline, only the withdrawal option will be available to users who are yet to migrate their accounts. Such users will also not be able to make deposits.

Poland isn’t the only country where banks are restricting services to cryptocurrency exchange platforms. The central bank of Iran and Zimbabwe recently barred banks from transacting with crypto exchange services.

Poland is Not a Crypto-Friendly Country

Generally, Poland is one of the least crypto-friendly nations in the EU. Several government agencies have in the past tried to stifle the growth of the industry in the country. The Polish central bank sponsored a campaign against cryptocurrency investment by paying popular YouTube personalities to produce disparaging videos about the market. The Finance Ministry also enacted a stringent tax law on cryptocurrency trading. The tax law was met with great consternation by digital currency investors in the country.

Malta is Fast Becoming the Blockchain Capital of Europe

While Poland continues to stifle the growth of its domestic crypto industry, Malta is taking giant steps to encourage more digital currency investment within its shores actively. As a result, major cryptocurrency exchange platforms like Binance and OKEx have announced plans to move their operations to Malta.

Joseph Muscat, the country’s Prime Minister, is a crypto and blockchain enthusiast who believes that bitcoin and other digital currencies are the future of money. Thus, under the aegis of the Malta Digital Innovation Authority, the country is trying to develop regulations that will encourage the growth of nation’s cryptocurrency market. Apart from Binance and OKEx, Neufund is also moving to Malta.

Image courtesy of BitBay.net