According to Bloomberg, the Famous South Korean crypto exchange Bithumb has soared to capture over 25% of crypto users in the region after years of competing with the country’s current leading exchange, Upbit.
Since the COVID-19 era, Upbit has been the primary crypto exchange in South Korea with a remarkably high number of users. However, Bithumb has devised strategic measures to divert high trading volume away from Upbit to ensure it has a fair share of the country’s crypto users.
Notably, the exchange actualized this significant progress months ahead of its forthcoming initial public offering (IPO) or further toward becoming a publicly listed company in the second half of the year.
Over 4.5 Million Users Conquered
South Korea ranks as one of the world’s most crypto-inclined countries with enthusiastic traders. Data from a December 2024 analysis by the Bank of Korea shows that 18 million citizens, about a third of the country’s population, hold cryptocurrencies worth more than $7.5 billion. On some business days, trading volume on domestic crypto exchanges exceeds that of the country’s local stock markets, Kospi and Kosdaq.
Bithumb suffered a significant customer loss after a $30 million hack in 2018. Therefore, in a step to attract more users and solidify its position as a major player in the South Korean crypto industry, Bithumb noted that it has boosted its security system to include robust features like ISMS certification and 5-5-7 regulation, separated wallets, and so on. It has also held a trading fee at 0.25%, which is the global industry average.
IPO Upcoming
Meanwhile, Bithumb is gearing up for a $1 billion initial public offering (IPO) by late 2025. To attract local and global investors, it plans to list on the South Korean KOSDAQ stock market and expand to the U.S. NASDAQ.
To boost performance and investors’ confidence ahead of the IPO, Bithumb has revealed plans to separate its non-crypto-related activities into a separate subsidiary known as “Bithumb A.” Losses and problems in the new subsidiary will not interfere with its crypto activities, thus keeping its trading platform more stable and safe.
Meanwhile, a basic reason behind the IPO is to enhance corporate transparency and governance, thus rebuilding investors’ trust in the exchange despite past issues.
