Binance US, one of the subsidiaries of Binance, the largest crypto exchange by trading volume in the USA, is now estimated to be worth little over $4.5 billion, after netting $200 million from the latest fundraiser that included an unusual combination of crypto and VCs companies such as Foundation Capital, Circle Ventures and VanEck.
According to the official statement of Binance US, the company intends to use the money from the fundraiser to invest in improving the overall platform experience and features. In particular, this includes a specific focus on educational and marketing projects and initiatives, upgrading the spot trading platform, and the development of new products.
Moreover, Bloomberg reports that Binance US wants to use the successful funding in order to better promote itself, marketing-wise, and consequently, by using mergers and acquisitions, to further expand its services and products on the market, all while putting special emphasis on low-cost crypto trading.
Brian Shroder, the CEO of Binance US, said that Binance has intentions to go public somewhere in the next two or three years, which will surely disappoint many crypto traders. One reason, as the CEO himself, states, is the 0.1% transaction fee that the exchange is charging. Especially compared with other rival crypto exchanges such as Coinbase, for example.
Coinbase retail users, on average, are being charged 1.5%, sometimes up to 3%.
According to Shroder, it is exactly due to the low fees that Binance US is reporting constant growth in valuation. As a result of this expansion, Binance US currently operates with 70% trading volume solely from institutions and is available in eight territories and 45 US states.
The biggest rival on paper at this moment for Binance US is FTX US, which managed to raise $400 million just two months ago in January. This consequently saw the company value jump to a whopping $8 billion, nearly double the total worth of Binance US that is $4.5 billion.
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