Binance Makes $1 Billion In Profits But The BNB Price Is Still Stuck

Binance makes a total of $1 billion in profits recently thanks to the new revenue system but the CEO of the company says that he is very confused about the price of the native token since it seems stuck in one place. In the latest Binance news we take a closer look at the price action of BNB.

In an attempt to increase the value of the coin, the company burned BNB coins every quarter worth 20 percent of the profits. During the 9^th burn which happened today, Binance sent 2,061,888 or about $36.7 million into an inaccessible address showing that their profit in the third quarter increased to more than $183 million. The number of burned BNB in Q3 is 26 percent higher than during the two previous burns together. The CEO of the company Changpeng Zhao confirmed that this latest burn will mark a major milestone for the company as its total profit since the launch of the exchange surpassed $1 billion. However, he also pointed out that binance’s profits are smaller compared to other exchanges. Despite the slow trading, the exchange managed to diversify its revenues and increase the profit.

One of the major factors that led to the increase of the revenue include ‘’ new services like Margin trading, an increased number of fiat on-ramps to make purchasing cryptocurrencies more accessible, and a multitude of other services we introduced that are beginning to bear fruit,”  as Zhao said.

In the meantime, Changpeng Zhao admitted that he is very confused about the current price of the native token which is down by 39 percent in the past three months despite that Binance makes huge progress. He explained:

“We believe BNB has grown beyond the point of depending on reducing supply (such as the BNB burn) to increase value. A far bigger portion of BNB value comes from its utility. We prioritize increasing the utility of BNB over short-term profits for Binance.’’

Zhao said that there are many possible reasons for this although none of them makes sense. There was a drop in the price of bitcoin but this cannot be the only factor. There was also some FUD as well but regardless of all that, the results are still positive for the company. The markets often confuse people and even the CEO himself as he stated but also noted that there is still much strive to become the best financial infrastructure provider for tomorrow and to work even harder to bring freedom of money to the people.