Bithumb Dethrones Binance: Becomes The Largest Cryptocurrency Exchange by Trading Volume
Bithumb, a South Korean cryptocurrency exchange overtook Binance and became number one cryptocurrency exchange in terms of trading volume. Bithumb has been trading an average of 1.2 billion U.S. dollar per day.
The South Korean trading platform registered an incredible 284% rise in volumes from 323 million U.S. dollar (October’18) to 1.2 billion U.S. dollar (November’18) while Binance was able to trade only 641 million U.S. dollar during the same period.
According to the Korean Market Analysis paper, released on Thursday by Cindicator, South Korea will play a major role in Cryptocurrency Market.
Simon Keusen, head of analytics at Cindicator said “The country is very open to new technology. The enthusiasm for crypto assets is palpable. Latest legislative initiatives show that the government understands the potential of blockchain technology. We believe South Korea will play an important role in driving the adoption of cryptocurrencies globally.”
CryptoCompare, a cryptocurrency market data aggregator, found that Korean Won (KRW) dominated BTC to fiat spot volumes with 288% surge in its volume since November.
Contrary to previous, trade volume of BTC into U.S dollar (USD) and Japanese Yen (JPY) dropped to 16% and 30% respectively.
CryptoCompare, however, reports that scenario with Bithumb is different with just above 5,000 users per day when compared to Binance, the latter has more than 67,000 users per day.
The trading volumes of Bithumb surged soon after Singapore based BK Global Consortium acquired a controlling share in exchange for 350 million U.S dollar.
Bithumb was able to scale up to the top position by implementing Special Gifts and Super Airdrop Event (Airdrop is when an ICO distributes free tokens or coins or blockchain project to the crypto community). Also, it implemented raffles and rebates to gain the attention of non-Korean users.
Bithumb enforced controversial trans-fee mining for the users who managed to trade specific trading volumes. Those users were later rewarded with ‘Bithumb cash’ for trading a specific volume.
CryptoCompare reports that “A volume increase on an exchange, combined with a decrease in visitors may point towards incentive programs such as competitions, trans-fee mining, rebate programs or similar.”
Will Korean trading volumes continue to accelerate or drop down in the coming month? Share your thoughts in the comments.