BINANCE IS MORE PROFITABLE THAN DEUTSCHE BANK
In the first quarter of 2018, Deutsche Bank, which is not only Germany’s biggest bank but also one of Europe’s leading financial institutions, reported a profit of $146 million. At the same time, the world’s biggest cryptocurrency exchange, Binance had a profit of $200 million in the first three months of the year.
Deutsche Bank was established 148 years ago. 147 years later Binance was still non-existent. It was founded 8 months ago. And its profit exceeded a leading European bank. The crypto startup has 200 employees, while the German banking giant employs 100,000 people.
Changpeng Zhao, CEO of Binance, wrote on March 3:
“Binance is the world’s largest crypto-currency exchange. In the first 3 months from inception, profits amounted to $7,500,000 USD. In the 2nd quarter, profits amounted to $200,000,000 USD. The 3rd quarter is still in progress, and is expected to have further growth. Any country that can attract Binance to open a branch in their location will receive a handsome tax income revenue.”
For Malta, therefore, where Binance relocated recently from Taiwan, it is a significant economic event making headlines in the financial press. Knowing the exponential growth of Binance’s revenues, it’s quite obvious that the government of Malta is happily embracing the cryptocurrency industry.
Christian Sewing, the new CEO at Deutsche Bank, said in his statement that the bank will dominantly focus on stabilizing a few major areas instead of diversification. They build their plans on a $800 million restructuring budget and a massive cut in the administrative headcount.
“Deutsche Bank is deeply rooted in Europe – here we want to provide our clients access to global financing and treasury solutions. This is what we will focus on more decisively,” Sewing told Reuters.
The total value of the whole crypto-currency market is around $400 billion now. It is less than the combined market caps of HSBC and JPMorgan. But when you look at that comparison you have to take into consideration the fact that the crypto-currency market has been around since 2009 only. And in 2009, it was only about Bitcoin really. Only 6 years later did Ethereum and the tokenized ecosystem appear.
If a crypto startup with 200 employees can defeat a major bank like Deutsche Bank in profit comparison, it is safe to say that the crypto-currency market has been demonstrating a steady and spectacular growth in its less than 10-year-long history to date.
If institutions continue to invest in the crypto-market and the demand for digital coins can be sustained it is not an overstatement to say that the signifance of crypto-currency businesses like Binance will gradually exceed the global that of the current major players of the global finance industry in the next ten to twenty years.