• Forbes reported that Binance lost around $12 billion in the past 60 days
  • There are rumors that Binance is being investigated by U.S. regulators
  • Binance CEO CZ says the key is to build products people use

Binance, the world's largest centralized crypto exchange platform based on trading volume saw a massive surge in its growth over the past years amid the colossal amount of FUD, investor exodus from CEXs and prolonged winter in the crypto market.

The previous year has not been kind to the cryptocurrency sector, especially since the year saw multiple crypto empires implode and burn themselves to the ground.

The controversial collapse of the Terra blockchain and FTX led to crypto companies filing for Chapter 11 bankruptcy protection or some shutting down their crypto businesses.

Binance is no stranger to the harsh crypto market last year that extended its horrendous effects this month.

Data from crypto data firm Defillama revealed that Binance customers withdrew a net of $360 million last Friday while Nansen, another crypto data firm, revealed that the CEX lost around $3 billion in December.

This week, Forbes reported that Binance's cash outflow is worse than what its CEO Changpeng Zhao, more popularly known in the crypto space as CZ, said last month, noting that the exchange lost around $12 billion in the past 60 days.

There are reports that Binance is being investigated by U.S. regulators, which contributed to the growing distrust of customers and investors of the centralized crypto exchange platform.

Despite all of these, on-chain data and analytics platform CryptoQuant shared that Binance actually saw massive growth over the past two years.

The chart, which the firm shared on Twitter, revealed that the CZ-led business experienced a 10 times increase in its revenue, which showed the exchange's quarterly revenue started to increase dramatically in 2021 which led to Binance hitting revenue of over $12 billion in 2022.

Interestingly, trading volumes on Binance started to slump toward the end of 2022, which resulted in the reduction of expected quarterly revenue.

In November 2022, CZ talked about Binance's revenue during the TechCrunch Sessions: Crypto 2022, which according to him, generates 90% of its revenue from transaction fees.

The crypto executive also said, at the time, that Binance removed all ads from crypto aggregator CoinMarketCap, which it acquired in 2020, to provide a cleaner and smoother user experience.

"We can turn that back on, that'll give us $40 million a year. But we don't need to today," Zhao said during the interview.

In May 2022, CZ said, "Incentives like play-to-earn, staking, airdrops, etc are great at attracting new users. But if the project doesn't have a "revenue" model that is greater than the "incentives", the coin price will eventually crash due to oversupply. The key is: build products people use."

The logo of Binance is seen on their exhibition stand at the Delta Summit, Malta's official Blockchain and Digital Innovation event promoting cryptocurrency, in St Julian's