Bitfinex revenue doubled in Q1 2020 to $ 21.4 million
The revenues of the Bitfinex cryptocurrency exchange for the first quarter of 2020 amounted to $ 21.4 million.The value has doubled compared to the fourth quarter of 2019.
These are the conclusions reached by The Block analyst Larry Chermak, who performed calculations based on the volume of UNUS SED LEO (LEO) tokens burned by Bitfinex. Bitfinex released LEO a year ago with the goal of raising $ 1 billion, which it claims to have successfully done. Subsequently, a mechanism was launched to buy out and burn tokens using at least 27% of the total income of its parent company iFinex.
Cermak calculated that the company‘s revenues in the fourth quarter of 2020 were $ 10.91 million, and in the third – $ 26.15 million..
Bitfinex Earnings Based on Burned LEO Source: The Block
Bitfinex’s reported volume of LEO burned is consistent with its trading volumes. This is to be expected since processing fees are the main source of income for the company..
Bitfinex revenues and trading volumes Source: The Block
As The Block notes, Bitfinex remains one of the most liquid cryptocurrency exchanges, however, it has noticeably lost ground recently. Since January 2019, Bitfinex’s share of “full trading volumes” has dropped from 13.7% to 5%. This led to a significant decrease in the company’s revenues compared to previous years when it was the dominant player in the market..
Since the start of the LEO burn in June 2019, the exchange has destroyed 17.34 million LEO for a total of $ 19.85 million. LEO is currently the 14th largest asset in the market in terms of capitalization. After a short rise to $ 2 last June, its rate returned to the starting level of $ 1, where it has been held all this time without significant fluctuations, despite the volatility of the cryptocurrency market.