The Singapore-based cryptocurrency exchange Huobi has reportedly earned $483 million in commissions in 2018, in spite of the declining market. This amount is more than that of Binance and OKEx.
Report: $483 Million in Commissions for Huobi
Huobi, currently the 7th largest cryptocurrency exchange by means of trading volume on CoinMarketCap, has earned the whopping $483 million in commissions in 2018. That’s according to a recent report by a local Korean media Sporbiz.
Interestingly enough, this amount is higher than the earnings of the world’s leading cryptocurrency exchange – Binance, which reportedly earned about $20 million less.
OKEx is also far behind Huobi with supposed gains of about $290 million. OKEx is the second largest cryptocurrency exchange after Binance.
So, How Did That Happen?
2018 was detrimental for cryptocurrencies. The entire marked collapsed, losing around $700 billion of its capitalization in the process.
Bitcoin is currently trading around the $3,500 mark, which is 80% shy of its January all-time high (ATH) value. The other cryptocurrencies are also down the drain, with some losing as much as 99 percent of their value.
So, the question which everyone’s wondering – how did Huobi manage to thrive in this seemingly devastating environment?
Well, for once, last December Huobi Group launched their Cryptocurrency Derivatives Market platform, in short – Huobi DM.
So far, it’s been going splendidly. According to a recent press release, Huobi DM is already doing more than $20 billion in trading volume. And it launched only 2 months ago.
Speaking on the matter, Livio Weng, CEO at Huobi Global said:
We’re pleased with the strong response. This reinforces our belief that Huobi DM truly caters to our user’s needs. We’ve been getting positive feedback from our clients on our lack of clawbacks as well as Huobi DM’s capacity to help sophisticated traders manage the risk of spot market fluctuations. I believe this explains our platform’s explosive growth, even in the midst of the ongoing bear market.
Additionally, despite being profitable, Weng has said that the company is being particularly careful of how it spends its money and has even laid a lot of people off because of the bear market.
Last but not least, My Bitcoin News reported that despite the ongoing bear market, cryptocurrency exchanges have marked a record year in 2018.
What are your thoughts on Huobi overtaking Binance and OKEx in profits? Let us know down below!