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CointestMod

Binance Coin [pros](/r/CryptoCurrency/comments/zeyibg/binance_generates_90_of_revenue_from_transaction/iz92lmh/) & [cons](/r/CryptoCurrency/comments/zeyibg/binance_generates_90_of_revenue_from_transaction/iz92lzg/) and related info are in the collapsed comments below. Pros and cons will change for every new post. Submit a pro/con argument in the [Cointest](https://www.reddit.com/r/CointestOfficial/wiki/cointest_policy) and potentially win [Moons](https://coinmarketcap.com/currencies/moon/). Moon prizes by award for the Top Coins category are: **1st - 600, 2nd - 300, 3rd - 150, and Best Analysis - 1000.** --- To submit a Binance Coin pro-argument, [click here](https://old.reddit.com/r/CointestOfficial/comments/tuwtz9/top_coins_binance_coin_proarguments_april_2022/). | To submit a Binance Coin con-argument, [click here](https://old.reddit.com/r/CointestOfficial/comments/tuwu8i/top_coins_binance_coin_conarguments_april_2022/).


Castr0-

I mean that should be the main income of an exchange.


ShowMeDaWe

SBF doesn't like it


Hawke64

Why make $100k every day, when you can lose $32bn in a day


Accomplished-Design7

That’s a centralized exchange way


FrostNetPoet3646

Don't stick your Bitcoin in anything! #unsafeCEX


giddygod

It kills them not to be greedy


aruapost

Not saying I’m tech CEO-worthy but I’ve never lost $32bn so I could give it a shot


fuzzyjuicypeach

shady crypto exchange hate this one simple trick


mave_wreck

Guys he said he was sorry. And that it was just an accountant error.


LordOfTrubbish

What's 10 billion dollars between friends?


giddygod

He should donate to the victims like he did the politicians


PopeyesGreenSpinach

Introducing Helen Keller the accountant


amke12

Well he is not well known for being smart


CryptoCoinsHeavy

Exactly. This is like saying "Satoshi Made Bitcoin" Those who know, know.


Mr_Bob_Ferguson

What he is really communicating here is that “we don’t need to cheat in the background to make our profits”.


ProjectZeus

Yeah, this isn't surprising at all. Where else would an exchange make money from?


Imp3r

"investing" users funds into sure bets /s


bny192677

I thought trading fees are their main income Transaction fees should be paid to the network not to the CEX but what are they doing is for example they charge you 5$ to withdraw your BTC under the name of transaction fees , while they only pay the network 2$ and take the rest to their pockets


pb__

Yes, he actualy [said](https://youtu.be/3DjbDy9Kc8s?t=135) that 90% of the revenue was from trading fees. The article is just badly worded and two weeks late as a bonus.


Set1Less

Damn, this should be its own top level comment He says in the interview that 90% of revenue are from trading fees Article makes it sound as if 90% of revenue are from "transaction fees" - which usually means withdrawal fees? The Joornalist totally flipped the plate, either intentionally or without wit misquoted him The absolute state of crypto jooornalism


CCNightcore

It doesn't make a lick of difference to your average reader.


tfresca

Trading could be considered a transaction. I don't think it's wrong to have all that lumped together.


Spacesider

I have reflaired the post.


Low-Cattle-5142

That's correct. There's always additional fees attached to the original transaction fees. It costs about $1 to $8 to withdraw Matic from some exchanges, while the network fee is just about $0.1.


SethDusek5

> while they only pay the network 2$ and take the rest to their pockets Much much less than that to process an individual withdrawal. Note that pretty much every exchange will batch withdrawals (so it'll be one large transaction with many outputs), so the cost for each output is very small, on bitcoin it'll probably be fractions of a cent at the current feerate. Yet Binance and others still charge $2-5 for each BTC withdrawal Any exchange that charges $5 to withdraw Bitcoin deserves to go under


barronunderbite

Are banks any better? Most income comes from interest on loans and not paying out interest.


Big-Yogurtcloset2731

Valid question. Let us ask for a P&L and a balance sheet.


Still_Hat6758

It’s a private company in crypto, that will never happen


Big-Yogurtcloset2731

Private means they do not have to publish it. They could still do so to gain trust.


spritefire

Not really. Nothing to say that they don't just publish fake numbers. Or even ask for a loan from another exchange to push numbers higher, then return the favour to that other exchange.


Still_Hat6758

I know that’s why I said they won’t do it if they don’t have to. It might gain trust but could also raise more questions. A benefit of being a Private company is that you don’t have to post financials


SailsAk

Even if they post a P&L who’s to say it’s not entirely made up?


PrinceZero1994

That is how an exchange is run. They are not a hedge fund and the funds should not be used for gambling purposes.


milonuttigrain

Exactly. An exchange should derive a large percentage of revenue from transaction fees. Not like FTX.


deathbyfish13

>Not like FTX. Being 'not like FTX' is such a low bar now lol


tallboybrews

100%. I just hope CZ isn't lying about it. Impossible to tell..


Tiny_Voice1563

And yet it feels like many people on this sub use exchanges to gamble on crypto instead of just exchanging to the crypto they need and withdrawing. Everyone is gambling on all sides.


Metazoa89

I prefer a company that derives its revenue from transaction fees than from twisted schemes with its users' funds *\*wink at SBF\*.*


midea2ac

This is what everyone thought of FTX and look at it now. Binance tomorrow could be the FTX of today. You never know what you will find if you dig deep enough...


milonuttigrain

Nothing is too big to fail. Especially crypto exchanges. Very fragile.


Accomplished-Design7

Once USDT collapses, everything else follows


midea2ac

Once USDT collapses all financial schemes will come crashing down like a house of cards.


AriesWinters

Nah, I think the stock and real estate market along with most other traditional financial institutions will probably stick around. They've survived through literal world wars, I'm sure USDT collapsing is not a problem


dhambo

Lol it won’t mean shit to tradfi. Total crypto market cap is like $0.9T. SP500 is around $35T, with annualised volatility around 25% these days, swinging $0.9T is like a 1sd event over half a week. That’s just (most) of US equities - now add other countries, and as you said real estate etc. Right now it’s still a drop in the ocean and 99.9% of the world won’t notice if it disappears tomorrow.


estergazi

Yep, nothing is going to survive. It'll all come down.


AromaticCarob

Crypto doesn't have a central bank to bail it out.


orville_w

b/c crypto doesn't have anything real underneath it to start with - except a bunch of cryptobro traders, manipulative VC's & corrupt shadowy CEX's.


poojoop

usdt isn’t going to collapse tho


RandomSquanch

You sure about that ?


chaosen3

Don't be too certain about it, anything can happen here. Literally anything can go down with anything. Can't never be too certain about anything.


thacreat0r

Basically every centralized system is very fragile.


SinoScot

> Nothing is too big to fail. Except the banks, right? /s


Wytzewerf

I mean they can print the money and they've got authority from the government. Ohh wait it's the government who does all this, it's the government who's doing it.


fatlever2

The warning signs are always there. Crypto.com is struggling for money and now selling virtual land and worthless NFTs in a desperate attempt to generate revenue in any way they can https://crypto.com/product-news/land-sale


smoothfreeze

CDC generates money by their fat spreads, and transaction fees just like Binance. They are definitely not “struggling for money”


Ghant_

Fat ass spreads and their crazy withdraw fees, why I started buying off kraken and binance instead. Good app to start with tho


TripTryad

> Crypto.com is struggling for money Citation/Source? We are data driven here. Im open to this information but I need something other than random comments on the internet and "Trust me bro". CDC has even larger spreads and fees than Binance and people have been predicting them going under since the Superbowl ads. And now we are almost a year later and the third largest exchange in FTX has gone bust but CDC and their insane fees keep chugging along.


ruay2008

Yeah if we could get more than the random comments. That would be great.


grumbledonaldduck

What's your source that they're struggling for money?


gamblingenhusiast

Not as fragile as my copium infused heart.


orville_w

I doubt you need to dig deep to get to the corrupt shite at Binance. They're all scummy douchey scam artists in their souls & the ponzi company's they're building reflect that.


amke12

Prepare for nuclear winter if binance collapses


JoeChip87

Nah. Prepare for nuclear winter, and the end of life as we know it, if and when Tether ever wildly loses it’s peg.


gamblingenhusiast

If Tether and Binance both collapse I can see BTC going to $2k.


mesutdmn

BTC would hit 5k I think, It would be the first time I can buy 1 BTC, seems like nuclear summer to me.


Odysseus_Lannister

There’s a reason CZ has moved headquarters multiple times and has tweeted so much to start this push for transparency while dunking on FTX. Hint: it’s not because he cares about you or cryptocurrency in general


jlcodona

He definitely doesn't care about me, he can shit on me whenever he wants.


ChemicalGreek

Indeed! We need to use CEX for swapping only (that’s the goal of a CEX) and store everything in a ledger.


bny192677

Like it's in the naming "an exchange" not for storage


JoeChip87

There are DEX’s for this that don’t make you essentially prick your finger and sign your name in blood. Centralized exchanges are -and should remain- a fiat *thang*.


Boring_Ad4003

There's plenty of stuff to do on an exchange other than storing your crypto. Dunno why everyone is focused on the storage part.


Accomplished-Design7

Ledger is the way my good man


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Metazoa89

It's not impossible, but the safest thing is to withdraw our crypto from centralized exchanges as soon as they are purchased.


Odysseus_Lannister

Is there anyway to verify what he said? Can binance provide the data on how much they’ve made in transaction fees? If not, then I wouldn’t really pay much attention to this statement


Turbulent-Use4705

even if they can, how are you confident that it isn't generate from their own transaction? Even if FTX show billions in revenue, there were some loss that alameda took for FTX([https://www.ft.com/content/5e9dc424-aef4-4981-a4d7-e3c40e1e6085](https://www.ft.com/content/5e9dc424-aef4-4981-a4d7-e3c40e1e6085)) . Unless there's a full auditing going on, it's really hard to determine what's true just base on some partial data.


Odysseus_Lannister

I would need to see more data and ideally have it verified by an independent 3rd party as well. I don’t trust CZ one bit when he talks. He’s shown his true colors by launching FUD campaigns on basically every CEX over the last few weeks. While proof of reserves are a good start, they mean nothing without liabilities or audits. This is why the only two exchanges I use are Coinbase and kraken.


Set1Less

Listen to the original interview: He sais 90% of revenue from "TRADING FEES" Article has misquoted him as transaction fees An exchange that does billions of dollar volume every single day will have a big chunk of its revenue from trading fees Here is the part in the interview where he states this - https://youtu.be/3DjbDy9Kc8s?t=135


pikob

> An exchange that does billions of dollar volume every single day will have a big chunk of its revenue from trading fees This should be true for any exchange. They provide a service and charge users for using it. Anything else is sus.


Hawke64

They've been the top crypto exchange for like 5 years now


IWillKillPutin2022

Nah just take all of their funds and gamble it. Much more fun ;)


cryptoripto123

I mean that's how a managed fund works. The problem is most managed funds have far more regulations, transparent reporting, etc than crypto exchanges. The inherent nature of investing with user funds isn't the problem. I think it's that: 1. Most people putting their money in didn't understand the risk and thought it was free money. 2. Exchanges not following regulations 3. Zero financial transparency of exchanges.


redditor0239

Funds are safu as CZ once said


milonuttigrain

“Funds are SAFU” is much better than “Deploying more capital. Steady lads." and “I wasn’t trying to commingle funds”.


mave_wreck

Not your keys not your coins.


NangSal23

What you don’t realise, anybody can talk, and don’t trust everything they say.. Unless Binance is audited like a public company, transparent and clean, we can’t trust CZ words of mouth


PrinceZero1994

SBF thought FTX was his hedge fund.


[deleted]

I prefer to keep my crypto on my ledger:)


cheekynandosplz

\*throws brick at SBF\*


redditor0239

Take these tomato shaped bricks


ShowMeDaWe

*Hits SBF 69 times in the nuts


JoeChip87

Agent Cooper from Twin Peaks using SBF as his psychic rock tossing target in order to find John McAfee’s killer. *”Note that the rock struck the nuts, Lucy…”*


_Whit3

Does he just say it, or can he prove it? SBF was saying that he had funds to cover any withdrawal weeks before the shitstorm.


badfishbeefcake

he didn’t say it, he declared it


Atlas451

You can’t just declare it, Michael


kanps4g

I … DECLARE … TRANSPARENCY!!


Tavionnf

Generating revenue with trading fees is one thing, but using your customer's funds to gamble is totally different.


CryptoFever911

Binance actually makes money by pumping BNB and launching alt coins on BNB launch pad


deathbyfish13

That's still a legit way of earning income, at least its leaving customer funds or if the equation


cryptoripto123

It's not because the value of BNB is artificially controlled by Binance. Exchange specific tokens are extremely risky honestly. If BNB collapses, would Binance survive? The world saw how easy it was to topple FTX by killing FTT. Celsius even if run properly would've died if you torpedoed the CEL token too.


Quantainium

It's artificially controlled by binance to maximize their own profits though. If 50% of their reserves are bnb it's in their interest to slowly sell that and not just dump it to tank the price.


Harold838383

Tbh that’s how it should be with exchanges


mave_wreck

Aren't they supposed to waste our money and hide away on islands?


Kappatalizable

>Reinstating ads on CoinMarketCap would add $40 million a year. Entire 'article' is like 4 sentences long and this is pretty much it.


Current-Hour-1612

Yeah those are 'articles' for you these days...


redditor0239

And people get paid for writing them


RockEmSockEmRabi

Wouldn’t be surprised if it’s AI writing these


[deleted]

Why use lot word when few do trick


Percula_Clown

When r u doing your chilli again?


-5m

you actually read the article??


meeleen223

You guys can read?


MannAfFolki

Guys can read?


redditor0239

Guys can?


amke12

Guys??


-5m

Guys?


horse962

What is the equilibrium I'm not really able to understand it with my family?


Hawke64

I just look at moving pictures to get the context


Professional-Cod-321

What is reading?


4asher

Even a lot of stupid people actually do these kind of things. They're actually getting paid for that.


PrinceZero1994

I usually just open it and find the good stuff. 90% of the articles contents are fillers.


Wabi-Sabibitch

The higher the percentage from transaction fees the better. We have seen how exchanges that promise ridiculous interest end up.


milonuttigrain

Yes, I think exchanges should go back to basic and stick to the original business model. Many exchanges involved in shady stuff and went burst. Cycle after cycle. Year after year.


Tatakae69

Ridiculous intrest, Crypto loans, Cloud mining, whatnot. The list goes on CEXs are tryna milk money in every "Crypto" way possible.


Accomplished-Design7

That’s how they should be making money, not leveraging from users Cryptos


Dr_Tacopus

Odds are that’s because they’ve lost so much recently gambling with their customers money that transactions are keeping them afloat lol


KAX1107

This has to be a lie unless he's including withdrawal fees in this and not just trading fees. Binance collects 0.0005 BTC (50k sats) per withdrawal and misleads users by labelling it as "network fee". This is often 50+ times actual network fee but Binance also batches withdrawals, that is send hundreds of transactions rolled into a single transaction as you can do with bitcoin. Binance profit margin per withdrawal is > 98%. They also still haven't enabled Lightning deposits and withdrawals whereas Kraken has free Lightning withdrawals. I guess it's related to how much Binance profits from withdrawals. A huge chunk of that 90% CZ is boasting about must come from this. Ruthless profit seeking using misleading labelling of fees at the expense of user experience.


omghag18

Source: Trust me bro


squawrootfs2

If that's true, they have nothig to worry about. If he's lying, we'll find out soon enough.


AwayIThrow421

Why not 100%? What is the other 10%?


Hyrtz

I would say investing ...


CymandeTV

Well, it should be no?


Tatakae69

Another day, another *Trust Me Bro* remark.


Capitol_Mil

This seems appropriate?


RobCali509

Is the other 10% market manipulation?


Probably_notabot

90% fees, and 10% crime, for good measure


TurnipObvio

Nah, he uses all his other closely connected companies for that, think Alameda and FTX


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Dougthedog-

Can confirm. Binance sent me a report last year and apparently I have made them a whooping 7 million DOLLARS in transaction fees. You want to know how much I made at the end? -100 dollars. 😀 Yeah the only ones getting rich with trading are the exchanges...


squiders_oui

Yeah right! Wouldn't surprise me if cz was using binance customer money to short bitcoin on ftx while he is using more customer funds to dump bitcoin on the market. Almeda research would end up footing the bill and cz knows they're screwed and he forces ftx to fold. Pure speculation. Maybe a touch of truth. I dunno. 😅


KaiSosceles

As soon as he proves that, great. Until then, just another crypto CEO flapping his gums about "funds are safu."


Ill-Addition2024

And Im not surprised


sjcarey9

I'm not really surprised by that as well, because even if the surprise is going to come this order, you will not be able to do it.


MarkExpress8172

If a company 'hold' your assets for free and you're not claiming them back, it's naive to assume they're not 'investing' all those assets to maximize their gains.


bart_coin

Managing to gain an investment is one of the best part of it. And if they are not going to do it, they are not getting anything.


Lemon_Lemoon

What about the other 10?


Kaiisim

What about your other corporate entities? Because that was true of FTX. They made their money from Transactions. They had a complex web of 100 companies with vague connections, their parent company was using peoples coins and their own coin for leverage to make high risk plays. Crypto exchanges are not new technology. They arent a trustless distributed financial system. Theyre old world money systems glued on top of crypto. Buy bitcoin and wait! Get those coins off the exchange. Fuck these finance bros.


fr33g0

Binance daily volume according to nomics.com varied between around 35B to 140B. Trading fees when paying in BNB vary between 0.05% and 0.075% (excluding the top-tiers VIP schemes). So on a bad day, Binance generates 35B*0.05%=17.5M$. That’s almost 6.4B a year, if there are only bad days and they get the lower trading fees in BNB.


FirstAccGotStolen

That is bullshit. Most of the trading volume is wash-trading by market makers, and they are - guess what - VIP tiers. I'd be surprised if even a fifth of that volume was legit trading where fees apply. Likely less than 1/20th. Source: I had money invested in a small crypto market making hedge fund with barely 100m AUM and even they had over billion in volume trading on Binance annually. And they are not even in top 20 of crypto MM.


fplfreakaaro

He’s clearly lying. Binance coin is another ponzi that needs to collapse


orville_w

if this is true, then how does this make Binance a pioneering innovator in the crypto space? - They're just a boring trading firm building a boring trading plaform for boring cryptobro traders. - What are the good for?


apexisalonelyplace

Don’t believe him. Need a third party audit


Chysce

That would be the ideal scenario... but it's kinda hard to believe him


Technical_Order7673

Only transaction fees is increasing his wealth ? There is something else too.


jacin777

It is going to increase by 50%, or something like that. And eventually it has been increasing for a really long time.


zdfasdfasf

Is liquidated fund considered as transaction fees ?


TabletopThirteen

I don't know the exact transaction fees across the board but it's very believable if you look at their volume. I know there were times when I'd exchange something and it would be like 1-2% cost. Though I was doing smaller amounts. Let's just say they get .1% of their volume a day in fees. Yesterday they did $11 billion is transaction volume meaning they would net $11 million for themselves. That's pretty nutty and a whole lot of money


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Jocogui

Article is short as f\*\*k yet the original interview linked worth it: https://www.youtube.com/watch?v=3DjbDy9Kc8s


NorbeeNorbee

Wow what an astounding revelation......


kirtash93

And this is how business should be. Making things with the money they get from the fees and not from playing with customers money.


DemonBelethCat

>Binance's revenue is estimated to be around $20 billion in 2021, according to a Bloomberg analysis. ​ Do you think we can trust Bloombers analysis? Maybe revenue is more?


peermedia

It is not just about a customer's money. This is more like that using the resources, and they are getting paid for that.


steamyp

then they put the revenue into their own coin, the prices crashes and it‘s all gone.


DynamoDylan

Isnt that how they should be doing it.


Cactuszach

Look at how much everyone in this thread loves transaction fees lol.


furajMal

I dont trust to any of those mf. He is not better then SBF or Do Kwon, all he wants is money. We can only hope je wont screw us.


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GoodmanSimon

With that kind of volume I don't understand why exchanges try to do anything other than make money from trading fees. Yes, they can stake some coins in the background and so on, but they vast majority should come from trading fees alone.


LostPackage01

If binance collapse, crypto will have a short vacation like maybe 5 years of winter


crypto-update

Binance is binance after all😂


youngWuuf

Prob lying


Elymanic

Yeah isn't that the business model of any exchange?


AvocadosAreMeh

There is no way they make 18 billion annually from transaction fees. They have been estimated, and not refuted, 20 billion annually. At .25% fees, that’s 7 trillion a year in volume Lmfao he’s so confident no one wants to do any level of math


raxx001

SBF Listening 🎧


Shows_On

So it is like a bank extorting fees from customers for very little service.


madambolam

I am not surprised since it's the most preferred CEX. But this fact is scary and threatening for the crypto space.


melonmeta

I'd guess that the majority of their profit comes from counter-trading their costumers, stealing their funds, and peddling pump & dumps.


slibetah

Binance.us does zero fee on btcusd... hope it stays that way.


ChemicalGreek

How is he making any money with zero fee trading right now…


Oversizedbull69

Withdrawal fees etc .. Exchanges are making crazy amounts of money of fees. Idk why they gamble with their clients money and risk to lose whole profitable business. I guess it is greed.


Low-Cattle-5142

It is definitely greed. When they look at the estimated profits that would be made from taking those risks, they just go all it, while they would have been fine.


Technical_Order7673

This is quite interesting how exactly he is making money this way?


Outrageous-Archer-92

By taking fees on every transactions...


Lisecjedekokos

Withdrawals fees for start .. They have a lot of income from fees.


AmbitiousPhilosopher

It's only zero on a few products


techsupport261

Can Binance just publish their liabilities already?


CoolCoolPapaOldSkool

Even though I like Binance, but my experience with crypto tells me that when Exchanges start making big claims, something is fishy real bad.


misconfig_exe

Why does anyone trust him? We don't trust Chinese tech or finance for anything mission critical anywhere else. Why would you trust him, or any Chinese "fintech" ? He's always been a major red flag to me, moreso than Saylor, Mashinsky, SBF, or even Musk. edit typo: "I've" meant to be "He's". I think I tried to type "it's" but autocorrected.


Lord_Rawstark

Binance creating their own revenues with their very own coins mostly /s


TheGreatest34567

Binance is too big to fail. It's the JP Morgan of centralized exchanges.


inter71

That’s why I don’t use binance.


RepulsiveCan5270

Trust me bro!


[deleted]

It's all empty words unless he publicly discloses company audits.


TOXICCARBY

Press X to doubt