Cryptocurrency exchanges are a license to print money — with the top ten exchanges generating up to $3 million a day in fees, according to Bloomberg.
Indian tax officials estimate the figure is even higher, putting the total annual income of the top ten is around $6.25 billion a year.
A Nauticus Exchange survey of some of the top exchanges suggests revenue is growing exponentially. Binance made $7.5 million in fees in its first quarter after opening last year, but by March it was making more than $40 million in fees a month — and that’s with their current 50% trading fee discount. Huobi has half the volume but makes even higher profits due to higher fees — around $54m a month. Even Kucoin is making $1.8 million a month.
And that’s before the profit they make charging exorbitant fees to list new coins. Business Insider reports ICOs are being charged between $50,000 and $1 million to list their new coins, depending on the size and popularity of the exchange. Listing on Binance reportedly costs between $350,000 and $1 million USD.
Exchanges have also seen spectacular growth in their homebrand coins. KuCoin Shares, which launched in September, increased by 2738 percent to its all time high. The Huobi token increased 64 percent to its peak despite launching in challenging market conditions in February. But the all star performer is the Binance Coin which offers a 50 percent reduction on trading fees. It increased more than 22,000 percent to its all time high, and is currently 12,000 percent up on launch. It’s made everyone who invested in the Binance ICO very wealthy.
So if launching an exchange and a coin can make such large returns why isn’t everyone doing it?
Well, it takes a lot of money, time and regulatory hassles to launch an exchange, which is why there are only 170 worldwide taking advantage of this explosive growth in crypto.
Nauticus Exchange will soon be one of them.
The Nauticus Coin hopes to emulated the success of the wildly popular Binance Coin by adopting its 50 percent fee reduction strategy. With 100 crypto and six fiat currencies, the Exchange aims to be a one stop shop — the only exchange users ever need.