I am wondering about the profitability of a NBT exchange:
- Trade fee (percentage on all trades)
- Spread between sell and buy orders
- Trade volume
- Withdrawal fee
- Deposit fee
So let us say that one exchange has 1m NBT of trade volume per day.
If the trade fee percentage is 0.2% that means that the exchange gets 2000 NBT as commission every day.
That would be certainly profitable.
The spread is a parameter set by a marker marker so it cannot contribute to the revenues of the exchange since the exchange is not a market maker.
I suppose that the withdrawal fee and the deposit fee accumulated over 24h are negligible, relatively.
Thus, my point is that the main revenues source of an exchange is the trade fee.
Am I right?
In that case, at current levels, running an exchange focused on NBT is certainly not profitable.
EDIT: Revenues should be 0.2%*1m NBT * 2 since the exchange takes a commission on each side of the trade, (sometimes taker % != maker % though)