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Bybit trading volume is in tens billions of dollars daily. Their comission rate for the retail traders is up to 10bp (0.1%). Even considering a huge part of tha
by reisse 2y ago
Bybit trading volume is in tens billions of dollars daily. Their comission rate for the retail traders is up to 10bp (0.1%). Even considering a huge part of that volume is coming from institutional players who enjoy significantly reduced commission rates, I think they're surely making few million dollars daily on comissions alone, maybe tens of millions in a good day. And besides comissions, they also have other sources of profit, like staking, crediting customers, and forced liquidations.
Being a crypto exchange in current market is very profitable. If the crypto itself does not collapse, I think it's totally possible for them to repay that sum in a year or less.
- evdubs 2y agoByBit's trading volume is almost certainly largely wash trading. Most unregulated crypto exchanges are rife with wash trading. https://www.nber.org/papers/w30783 https://www.nber.org/papers/w30783
- plantain 2y agoMost of the trading is not done by retail traders but at much lower fees than that, if not being paid (market makers). I just can't make it add up.
- spaceman_2020 2y agoHyperliquid, a decentralized perp exchange, is a good proxy for ByBit’s revenues. On an average, Hyperliquid does between 800k-1M in revenue per day. ByBit is substantially bigger and easily does 50-100M in monthly revenue
- reisse 2y agoI know! As I stated, > Even considering a huge part of that volume is coming from institutional players who enjoy significantly reduced commission rates... But the volume is huge. Even if we take the best publicly shared MM rates from Bybit (which is 1.5bp taker commission, 0.5bp maker rebate), and assume the whole volume is traded with these rates, it is still 1bp from 40B dollars, which is 4M dollars daily.
- skeeter2020 2y agoeven if this is true, they'll use their entire cashflow for more than a year to cover a single loss? That's not how business works...
- TimJRobinson 2y agoIt's not like they have a choice. If they don't they have to declare bankruptcy because they can't honor customer withdrawals.
- xnickb 2y agoI'm nowhere near expert on any of the things below, but: My gut tells me if an exchange makes as much money as you suggest, people involved in that exchange are making even more profit from the said exchange, otherwise they wouldn't engage. The whole thing being literally money out of thin air, it feels like a huge bubble that should inevitably burst bringing down _ a lot _ of collaterals with it. </speculation>
- alberth 2y agoCoinbase charges 100bps (1%) between trader & maker fee. Just last quarter, Coinbase had: Revenue: $2.2B Net Income: $1.3B https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees https://help.coinbase.com/en/exchange/trading-and-funding/ex... https://s27.q4cdn.com/397450999/files/doc_financials/2024/q4/Q4-24-Shareholder-Letter.pdf https://s27.q4cdn.com/397450999/files/doc_financials/2024/q4...
- FabHK 2y agoNote that Coinbase (like most exchanges) charges retail clients outrageously high fees (orders of magnitude more than you would pay at a competitive FX or equity broker), but institutional and whales that trade a lot very small fees. Yet another way crypto moves money from poor suckers to insiders.
- alberth 2y agoYou just described volume-based discounts. What’s so wrong with that? It’s the same reason why buying a single soda at a convenience store cost more (per unit) than buying a large pack at Costco.
- _factor 2y agoTry to become an insider at one of these exchanges even with a couple million dollars. See how it goes. This is like Coke ONLY giving discounts to Costco instead of anywhere else so that Costco can reap the rewards. Walmart, Target, they can all pay full price. The convenience store spends more money to package individual items. A crypto transaction is the difference of a keystroke. They are not comparable on many fronts.