Binance CEO, Changpeng Zhao, has revealed the firm is in a strong economic position but could decide to monetize its other products including CoinMarketCap and TrustWallet if crypto winter persists.
According to Zhao, Binance generates around 90% of its revenue from transaction fees on the crypto exchange, fees which change depending on the price of Bitcoin.
CZ revealed this as he answered questions in a video interview where he distinguished his ‘profitable’ business from FTX, going further to highlight extra sources of revenue Binance could ‘turn on.’
One is CoinMarketcap, a crypto information website that Binance acquired in 2020. According to Zhao, the site was making $3 million per month in ad revenue back in 2020 but they stopped the ads.
“We removed all ads so there are no banners, no pop-ups, it’s a much cleaner experience. But we can turn that back on, that’ll give us $40 million a year. But we don’t need to today, we have many products we provide for free just to increase the speed of adoption. But if we want to monetize those, we could.”
The Binance CEO also said that while the collapse of FTX negatively affects the crypto sector in the short-term, over time, it will help to create a more responsible and transparent sector.
On concerns about Binance’s BNB token being comparable to the FTX token, Zhao said that they are different because Binance has proof-of-reserve and is working with auditors and regulators, adding that they have a 100% reserve for user assets.
Moreover, Zhao dismissed the idea that the collapse of FTX will encourage more decentralization and provoke people to self-custody their assets.
“Today, if you ask everybody in the world who does not have crypto to hold crypto on their own, they are not technically capable of doing that.
“So if we just force people to go from banks directly to DeFi, most of them will lose their own money because they misplaced it, or they lost their keys, or they don’t know how to encrypt it, etc. That’s not the best way to grow the industry.”
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