Under Shroder’s tenure, Binance.US seems to be reversing its reputation, once marred by rapid management turnover and ongoing regulatory battles, and pulling ahead in the fight to win over the U.S. While other competitors including Coinbase, FTX and were spending millions of dollars on Super Bowl ads during the crypto bull run, Binance.US stayed relatively quiet. The exchange is also taking a less flashy tack when marketing in the U.S. We want to build more web3 tools,” Binance founder Changpeng Zhao told Decrypt in an interview this week. We’re not going back we’re moving forward. That’s, again, not a wrong or right approach. “Some exchanges want to go back to stock trading and target that market. retail investors, focusing on its core competency in crypto. Still, retail investors bring in more revenue overall, in part because of the steep discounts Binance.US offers to its highest-volume customers, he added.īinance is also taking a markedly different approach from FTX in luring U.S. Today, 70% of trading volume on Binance.US, the American offshoot of the global exchange, comes from institutional customers, its CEO Brian Shroder told TechCrunch in an interview. That’s a drop in the bucket compared to its global business, which saw volumes of $10 billion for the same period - about seven times higher than volumes at both FTX and Coinbase. Its Binance.US division saw spot trading volumes below $300 million as of July 12. market as it battles against FTX for customers. It makes sense, then, that Binance has its sights set on luring more retail investors, but the largest global exchange is still a bit of a dark horse in the race for the U.S. retail investors, its decline presents a valuable opportunity for global exchanges to poach its users and boost their own revenues. After all, if Coinbase ascended to its current level of success in large part because of U.S. stock trading in May, to try to turn FTX into a one-stop shop for its customers’ needs. SBF, as he’s known in the crypto world, has been pulling out all the stops to broaden its appeal to the average retail investor, including introducing zero-fee U.S. Coinbase entered the derivatives business for the first time last month, while FTX launched an institutional trading platform in March this year. Retail investors comprise around 95% of Coinbase’s transaction revenue, although institutions account for most of its trading volume, according to its latest quarterly filing.įTX is best-known for catering to more sophisticated traders through its derivatives offering, which makes up the majority of its volume - a natural fit for the exchange given its founder and chief executive Sam Bankman-Fried’s background working at a quant hedge fund. The three crypto giants all have different established customer bases and are trying to steal each other’s market share. Now, sensing Coinbase’s moment of weakness, the two largest crypto exchanges in the world by volume (Coinbase is third globally) - Binance and FTX - are hoping to seize their opportunity stateside. Its competitors, though, have been lying in wait for their moment to close in on the U.S. The exchange got over its skis quicker than even Coinbase itself probably imagined, a point evidenced by its decision to rescind job offers last month from candidates who had already accepted them. Its trading volumes and number of monthly transacting users were both down from Q4 last year - bad news for a company that depends heavily on transaction fees for its revenue. The company posted a $430 million loss in the first quarter of 2022, underperforming Wall Street analysts’ expectations. But as the going gets tough in the crypto markets, the company seems to be fumbling the bag, leaving it vulnerable to competition.Ĭoinbase’s stock price is down nearly 80% from where it started the year and it recently made headlines for laying off one-fifth of its staff. As the largest publicly traded crypto exchange in the United States, Coinbase has become something of a household name.
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