South Korea’s largest Cryptocurrency exchange has been acquired by BK Global Consortium. The company has spent US$ 350 million to get a 50 percent stake of Bithumb exchange. Different people have given varying views about the acquisition. Nevertheless, investors are optimistic that the new management will play a major role in enhancing security on the exchange.
BK Global Consortium Invests US$ 350 Million In Bithumb
Bithumb has sold half of its shares to BK Global Consortium at a cost of $350 million. Kim Byung-gun, a blockchain investor and renowned plastic surgeon played a major the acquisition deal that was reached on October 12. The acquisition will now see the Singapore-based Consortium become crucial in the management of the exchange.
Bithumb is not the only exchange in the country to be acquired by large companies. Upbit is owned by a Kakao’s subsidiary called Dunamu. Kakao is one of South Korea’s largest conglomerates. Shinhan, the largest commercial bank in Seoul controls Gopax. Nexo, a US$15 billion company runs Korbit exchange.
South Korean Crypto Market
Bithumb is the largest Cryptocurrency exchange in South Korea. The company has a loyal user base that has made it the favorite exchange in Seoul. However, its dominance has come under threat in recent times mostly because of the entrant of new players. An exchange such as Upbit has grown and now has a larger volume transaction than Bithumb and may become dominant in the near future.
Why Investors Are Happy With The Acquisition
Most investors are optimistic that the acquisition will help in improving security on Bithumb exchange and reduce cases of cyber-attacks. The new owners will focus on internal system management and security and help in improving the security of investors. This will ensure that the funds on the exchange are secure. Many investors hope that the new management will prioritize security to boost the confidence of users.
Conglomerates are always careful not to tarnish their names. They know the dangers of not protecting their brand image and name value and work to ensure they remain faithful. Exchanges owned by such companies like Upbit are much secure and have low or even zero cases of theft. BK Global Consortium will, therefore, be determined to protect its name and that can only mean improving security on Bithumb.
Given that BK Global Consortium is already registered in Singapore, it will play an essential role in ensuring that Bithumb enters the new market. On several occasions, the exchange has revealed plans to move to Singapore. The investors are also happy that the acquisition will give the exchange a better opportunity to not only enter but also penetrate the new market.
Previously, Bithumb has been a profit-maximizing entity. The interest of customers might not have been a priority to the former owners. This could partly explain why Crypto investors continue to lose their funds in some companies. The acquisition, however, has changed the exchange into a security-driven exchange as the new owners know the only way to protect their image is by protecting their customers. The new development is great to all Crypto players in South Korea and beyond.