How do you lose so much money when your business it to charge fees? You'd have to do something really stupid to not make money.
Then comes office infrastructure, if any and cloud assets.
They have >4k employees. Assuming they make US minimum wage, they would cost almost 240,000,000/yr. It’s almost certainly MUCH higher.
They spend $550b a quarter on R/D. That’s likely mostly salary.
https://s27.q4cdn.com/397450999/files/doc_financials/2022/q3...
What does b stand for again…
It didn't
> Even if their effective fee is only 1/100 of a percent that's $4 million.
It's not.
The reason? They "traded" fictitious currencies whose "value" is pure speculation and nonsense. Their fees are also denominated in these fictitious currencies.
However, neither the offices they rent nor the people they employ have any interest in these, because rent and salaries are paid in something that actually has value: the dollar.
Now, where does the actual money come from is a good question, but I'm too lazy to read their SEC filing.
In 2018, 90% of employees received their salaries in BNB
https://www.ccn.com/90-of-employees-at-major-crypto-exchange...
Given their "grossly inaccurate filings" I wouldn't trust random tweets https://www.ft.com/content/3fb2f6cf-e132-43f4-9d6a-34fd13eb8...
They had $365mm in revenue from transactions. They has $1.1b in expenses. $550mm is employee/r&d.
If I win, I keep the money. If I lose... You'll have a problem a few years down the road, when you try to withdraw.
Every one of the allergic-to-sunlight exchanges has a huge incentive to do what I described.
On top of that KYC and other operational costs really add up, and without another revenue stream than the transactions themselves it may simply not be enough of a slice to be viable.
They were making money with the current amount of spending but then crypto flipped
They probably will have to lay off more people and give up on their current pace of development. Tickets will take 5 months to complete instead of 2