To help stamp their presence in the market top crypto exchanges develop their own crypto coins. Since they already have a platform, it helps them market the coins. A good example is the BNB coin. Who is behind the coin? Yes, you are right, the world’s leading (trading volume) cryptocurrency exchange, Binance.
Another top crypto exchange, Bithumb, has hinted at plans to develop their own coin. Bithumb is the largest crypto exchange in South Korea and occupies the fifth slot globally. ‘Bithumb coin’ will be the name of the coin.
But with the current ban on Initial Coin Offerings in South Korea, Bithumb will have to find a ‘clever’ way for the ICO sale. One of this ways will be to find a foreign ground to launch its ICO. According to TokenPost, a crypto-dedicated publication based in S.Korea, Bithumb has chosen Singapore for their launching/sale of their Initial Coin Offering.
From a distance, Bithumb seems to have watched Binance closely and learned what a self-developed coin could do for the exchange.
At Binance, the BNB coin is hooked with bright-looking coins a move that assists Binance to boost its liquidity. Presumably, Bithumb is looking to have the same effect on their exchange.
On where to launch its ICO, Bithumb has, most likely, learned a few lessons from another South Korean entity, ICON, which used Switzerland for its ICO sale in a bid to evade restrictions in the country.
Apart from Binance, Kucoin and Huobi are also reaping the fruits of having their own coin. Financial regulators in South Korea classify initial coin offerings as credit investments and as such they must follow the laid down procedures outlined in the country’s Lending Act.
Recently South Korean authorities have been very vigilant in the cryptocurrency space, from mining, investing and operating cryptocurrency exchanges.
With the kind of success Bithumb has as an exchange, do you think their coin will inherit the same success?
Let us know your thoughts in the comments section below.