Google Search: “Binance” vs. “Deutsche Bank Binance”

At the end of last year, I wrote an article entitled Binance Exchange: Fueling a Hot New Era of Token-based Exchange Models?, diving into the innovative token-based exchange model Binance brought to the competitive table. Unarguably, their business model along with being at the right place and time has catapulted them to being the top cryptocurrency exchange in the world — 7-months after starting the business.

This is unheard of in the world of business. A startup becoming the all hailed unicorn within MONTHS. Unicorn = billion dollar valuation. I don’t know what Binance’s valuation is or if we can even value the organization from a traditional valuation standpoint; however, their 24-hour volume as I type this is $3.9 billion. They charge a 0.10% trading fee from each side — we’ll do the math further down.

This comes after Binance has reportedly surpassed Deutsche Bank in quarterly profits just 8-months after launching. From our friends at CryptoSlate,

While Deutsche bank raked in an impressive $146 million over the course of Q1 2018, Binance brought in profits in excess of nearly $200 million during the same time frame.

They continue, citing that Binance also has under 200 employees while the 148-year old Deutsche Bank has over 97,000 employees. I don’t know about you, but this seems to be the act of superior efficient systems over inefficient systems. Binance quarterly profits are 36% higher and they have 0.2% the employees that DB has. Probably way less commitments to expensive office building leases too.

‘Crypto Dust’ Simple Convert to Binance’s BNB Coin

They did it again. Binance released a function that allows us to deal with the age old ‘crypto dust’ problem. If you don’t know already, using Binance’s BNB coin to pay fees on their exchange grants the user a 50% discount on trading fees. Now we can easily convert our micro-fragments of cryptocurrency directly into Binance’s BNB coin through using the “Convert to BNB” button as seen in the picture above.

As you can see from the screenshot above, I was able to select the coins I was interested in converting to BNB and was easily able to convert less that $0.45 BTC worth of altcoins into BNB. At 0.00063891 BNB for the conversion fee, it only cost $0.0091747476 worth of BNB. Not sure about you, but the 2% conversion fee on this transaction seems worth it considering it is a small price to pay for efficiently converting 100+ tokens into BNB. I bet the percentage charged goes down as the amount of BNB being converted goes up too, but cannot confirm that yet.

BNB, Binance’s Native Currency Utility & Model

Binance charges a 0.1% trading fee on all trades from each side, but provides traders using the exchange a 50% discount on fees when using the native BNB token to pay fees with. That’s one aspect of their innovative token model — put the token at the center of the ecosystem as the native currency and provide discounts when using the native ecosystem currency to make payments. Genius. Why hadn’t any of the old crypto exchanges thought of this before Binance?!

Earlier we mentioned Binance surpassing DB in quarterly profit. Below are Binance’s revenue for the aforementioned $3.9 billion 24-hour trading volume, today, based on three variable levels of fees collected:

0.05% (50% people using BNB) = $1,950,000 x 2 (both buy/sell sides) = $3,900,000

0.075% (25% people using BNB) = $2,925,000 x 2 (both buy/sell sides) = $5,850,000

0.1% (No fees discounted) = $3,900,000 x 2 (both buy/sell sides) = $7,800,000

Add in the fact that Binance also has BNB markets with over 50 tokens/coins trading against it. I like to call this “demand slack tightening.” What I mean by this is that each of those markets is taking BNB coins to make the market — to fill the order book. So those BNB are occupied from being used in other areas of the quickly expanding Binance ecosystem, right?

If we look at the other early components of the Binance ecosystem I’ve put into a sales funnel image above, we can see that there are some pretty powerful synergies going on between them. Binance servers both the trader and the entrepreneur while also playing an important infrastructural role within the overarching cryptocurrency market, proactively leading our community to mainstream adoption.

Exchange-to-LaunchPad

They started their journey as an exchange, offering a superior source of liquidity for crypto projects and traders compared to the archaic exchanges operating upon their launch. About 3-months into their trek, Binance initiated their LaunchPad through the breadwallet and Gifto Official Token Sales.

The LaunchPad feature was wildly successful and both projects were very quickly funded. Even examining the first sentence of the project description above, both of these projects may work in synergy with Binance as Binance aims to become a decentralized exchange (DEX).

LaunchPad-to-Binance Labs

The exchange provided easy attraction of capital for the LaunchPad because traders were already freely trading cryptocurrency on the exchange — participating in the token sale was not much harder than making a trade on their exchange. Soon after, they launched Binance Labs which is their incubator/accelerator for attracting and seeding projects within their ecosystem. This becomes a lead generation source for Binance to attract innovative projects from their over 7,000,000 user ecosystem.

More Stories From CrowdConscious About Binance & Exchanges:

Binance Labs-to-Info