Daily market review for 10.07.2018

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2018-07-10 15:09:47

The leading cryptocurrency exchange Binance expects this year to receive a net profit of up to $1 billion. The trading platform has already registered about $300 million in revenue in the first half of 2018, as well as a fivefold increase in the number of users. This data demonstrates the serious growth of Binance, which is taking steps towards global expansion.

Profitability of operations of cryptocurrency exchanges practically does not depend on whether the market is falling or rising, and whether clients receive income or suffer losses. This year, when cryptocurrency investors suffered the greatest losses in a long period; Binance, one of the largest cryptocurrency exchanges in the world in terms of trading volume, has already earned $300 million dollars for the first half of 2018. Moreover, according to its CEO Changpeng Zhao, the trading platform expects to receive a net profit from $500 million to $1 billion for this year.

The average daily turnover on Binance, which was launched about a year ago, is approximately $1.5 billion, the founder and CEO of the platform said. In an interview with Bloomberg, Changpeng Zhao also said that his platform now has 10 million registered users, while in January this year there were about two million users.

Binance has grown significantly since July last year, after opening its doors to users, thanks to a successful ICO of $15 million. The volume of trading on the platform grew in parallel with the prices of cryptocurrency at the end of 2017 – at that time the exchange registered transactions for up to $11 billion daily.

Binance was founded in China, but left the country before the ban on the cryptocurrency trading, introduced by the Beijing authorities, came into force last September. The Exchange moved its headquarters to Japan, and earlier this year opened an office in Taiwan.

In March, the Japanese Agency for Financial Services issued a warning notice and asked the exchange to stop operations in the country. It was reported that the company was threatened with the criminal prosecution for work without a license. After the increase in normative pressure on the stock exchange both in Japan and in Hong Kong, where the platform also worked, Binance decided to move to Malta.

In Malta, Binance intends to create an exchange to exchange the fiat money for digital currency and start supporting deposits and withdrawals in traditional currencies, adding trading pairs with EUR and GBP. Malta is an island state and member of the EU, it has established itself as a crypto-friendly jurisdiction, along with Gibraltar and Switzerland. The other day the parliament in Valletta adopted a new regulation for the crypto industry in the country.

The authorities of Malta welcomed the move of Binance, which was not the only cryptocurrency exchange, flattered by the favorable business climate that the government is trying to create for the cryptocurrency business. Another platform with Chinese roots OKex announced in April that it is moving to the island. A similar statement about the move was made by the Polish Bitbay exchange, which also had to leave its native jurisdiction because of pressure from the regulators and banks.

Earlier this month, Binance suspended trading for several hours due to abnormal transactions with Syscoin. Last month, the platform announced a partnership with the Jersey authorities, which will create about 40 new jobs.

Now, let's move to the technical analysis of Bitcoin (BTC):

Bitcoin broke through the inclined trend line and rushed down. It reached the nearest support level of $6,370. More than likely, it will now jump away, but then continue the downward movement. We think that it may well fall to the next support level of $6,200.

Technical analysis of Ethereum (ETH):

The way Ethereum went down tells us that the sellers decided to drop their long positions in a large volume. Now it has reached the support level of $440. We expect further downward movement to the support level of $400.

Technical analysis of Ripple (XRP):

Ripple did not lag behind its colleagues in the cryptocurrency market and also went down. It may well decrease in the near future to the support level of $0.41. Let's wait until tomorrow, and tomorrow we'll see if our forecast is accurate.

Disclaimer. This review is only for information purposes and cannot be considered as a proposal or an indication to perform certain transactions in the financial and commodity markets. The estimates and recommendations in the review are the personal opinion of the company's analysts. The company's view on the prospects for individual financial instruments is valid as of the date of the report. The Company does not assume any liability and liabilities for compensation for damage that may result from the use of this report.
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