As cryptocurrency grasped mainstream adoption towards the latter half of last year, many early movers in the space grossed major profits. The focus in growth and wealth was primarily on the investor, but it seems many have forgotten about the actual exchanges the coins are traded on. Most exchanges have small fees (besides Coinbase) which add up when you consider the millions of transactions that happen on a daily basis.

Back in late January, the U.S’s largest exchange Coinbase reported to its shareholders that the company had made $1 billion in revenue last year. Many that have used the service, weren’t pleased with these findings as using and dealing with the company is a complete nightmare; it constantly crashes during peak trading/growth and even has a current lawsuit filed against it for insider trading.

Still, around 45% of the company’s 2017 revenue gained was in December, when the cryptocurrency market hit an all-time high. The current trajectory of the company shows that it may be highly unlikely that the company will reach the same figures in 2018, unless they can get it togETHer.

Coinbase isn’t the only exchange bringing in the cash. Major exchanges such as Binance and Upbit are said to be bringing in over $3 million in fees, a day.

Source: Bloomberg

As you can see from a Bloomberg analyst’s chart above, many of the major cryptocurrency exchanges are bringing in over $1 million in revenue a day. What’s amazing is the 2nd largest grossing exchange, Upbit, only started operating our of South Korea in October of last year. Many of the exchanges are privately held and only a few years old, making it impossible to find any details on their management teams or financial statements. Quite alarming for a space that puts “transparency” at its forefront.

Still, investors will continue to use these platforms, but it just goes to show where the real money is in the cryptocurrency space. Forget day trading – you might want to get your foot in the door of a major cryptocurrency exchange.

Featured Image: Ed2Go

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