Everyone knows crypto exchanges earn a lot. But how much exactly? Below chart shows their daily trading fees made on the spot market. No liquidations, no market making, no sponsorships and ads, no native tokens, no investments, no listings. Just a poor little spot.
No wonder they burn cash at conference models, F1 cars and fancy ads with Messi. WellâŠthey can afford it, why not? After all, $1.2B from just trading fees is nice.
But I absolutely guarantee that the total revenue is at least 10X the number. Likely more. Sky's the limit really, much like with a casino. (ooops?)
Letâs run a common scenario.
You are an exchange investing $1,201,453 into a project at presale.
You then decide to give it 4X the price at listing (which is common and quite conservative scenario)
Right off the bat, youâve made 40X.
Which could be double or tripled EASILY.
Why?
Because you might very well own the entire distribution chain: from KOLs, to X bots, to PR & Media, to conferences and aggregators. Anyone in the middle also works for you, directly or indirectly.
Quite abstract, isn't it?
MATIC.
A quick disclosure: this is public info. So by no means I am pointing fingers.
Binance invested $158,000 in MATIC via their incubation program under the following conditions:
â Presale: $0.00079
 â They bought 2% of the entire supply
Now itâs worth $110M. At its peak â over $500M.
Simple math.
Now imagine aping into MATICâs great technology.
Assuming real liquidity, they are probably selling their seed round till todayâŠ
Retail is exit liquidity.
It always was, it always will.
But that's a topic for another day.
Source: Farhad F
