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Who Survived Crypto Winter?

Who Survived Crypto Winter?

Since the end of the euphoria of 2017, the market has undergone a downward trend with BTC losing 80% of its value and altcoins went down by 90%. This is referred to as ‘crypto winter’, or even ‘nuclear winter’. Surrounded by market iciness, few companies managed to survive while others went through a slump. In part, Binance and Coinbase managed to surmount the bear, Nvidia stocks lag.

Binance Profits a Total of $446 Mln in 2018

The Block published the results of their analysis on the world’s biggest cryptocurrency exchange, Binance. The analysis was inferred by The Block through Binance’s BNB tokens quarterly burn rate, which they publicly disclose; not the exchange’s financial records.

In the height of the crypto bull run, Q4 2017, Binance raked in $201 mln, which is said to be the most profitable term for the exchange. During the first quarter of 2018, the exchange earned over $149 mln; $116 mln for the second quarter; $80.9 mln for the third quarter; and $49.6 mln for the year’s last quarter totaling to $446 mln.

Setting aside that massive amount, the analysis indicates that the profits are falling quarter by quarter beginning Q2 2018. Nevertheless, Dovey Wan of Primitive Ventures quipped, ‘Binance surpassed Deutsche Bank in profits in Q1 2018.’ She explains this highlights the potential of digital assets to buffet the current financial system.

Coinbase is Valued at $8 Bln in 2018

In October 2018, Coinbase announced they successfully concluded a Series E funding round during the fourth quarter of the 2018 crypto winter. The round was led by Tiger Global Management and participated by Andreessen Horowitz, Polychain Capital, Wellington Management, and Y Combinator Continuity. Now, the exchange is reportedly worth $8 bln and is at the apex of the bitcoin ecosystem.

Two months after the funding round was completed, the exchange accomplished the largest crypto diaspora to date where $5 bln worth of cryptocurrency migrated from hot to cold storage. They also launched Coinbase Earn, enabled Paypal support, and announced 31 potential coins listing on the exchange.

Nvidia Stock Value Drops

The bear market is said to be responsible for Nvidia’s drop in value. In late 2018, the hash rate for BTC fell nearly 50%, crypto winter made crypto mining less profitable and a number of miners exited the market.

In the previous four months, the value of the chip manufacturer’s stock halved. The company also trimmed down their projected 2019 revenue: $2.2 bln from $2.7 bln. Nvidia cites the plummeting of BTC price as the reason this.

But, according to reports, the crypto mining industry is staging a comeback, with farms reopening and new miners entering the space.

Image credit: Unsplash

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