Most cryptocurrency enthusiasts are well aware of how South Korea plays a big role in the industry. Local exchanges generate a lot of trading volume every single day. Additionally, it is evident such companies are also looking to expand their presence. Bithumb aims to do exactly that by issuing its own native token. For now, it seems as if this token will be sold through an ICO hosted outside of South Korea.
Bithumb has been a remarkable cryptocurrency exchange over the past year. It seemingly dictates the price of all currencies listed on this exchange. Especially when it comes to altcoins, its customers show a keen interest in trading them quite frequently As such, the company decided to open a physical support desk in South Korea a few months ago.
A Very Bold Plan by Bithumb
This was just the first step in expanding Bithumb’s presence. Local sources now claim the company wants to create a native exchange token. This is not a unique business model, though. Companies such as KuCoin and Binance also have their own tokens to deal with trading fees. For Bithumb, creating such a token seemingly makes a lot of sense at this stage. It will further solidify the company’s position in the cryptocurrency world
Issuing this token through an ICO does raise a lot of questions. More specifically, initial coin offerings are illegal in South Korea as of right now. That presents a big roadblock, for obvious reasons. However, it seems Bithumb is planning to issue its token in a different country. This would help them evade any issues with the Korean government and regulators. An interesting decision, although specifics remain unclear at this time.
Moreover, the Bithumb token will not be unique to the exchange itself. Instead, the company aims to list this token on other exchanges as well. That in itself is a very different take on creating a native token, albeit an interesting one. It will be interesting to see how this plan pans out in the coming months. If successful, Bithumb will set an intriguing precedent for the rest of the industry.
Header image courtesy of Shutterstock