Crypto Exchange Bithumb Eying for KOSDAQ Listing to Overtake Upbit
Bithumb, a renowned crypto exchange in South Korea, has announced plans to go live on the Korean stock market. In a November 12 update, Bithumb stated that the crypto exchange has commenced the process for its initial product offering (IPO) to be listed on Korean Securities Dealers Automated Quotations (KOSDAQ).
An IPO refers to issuing a private company’s shares to the public to expand the company’s revenue streams. This development will position Bithumb as the first digital asset provider in South Korea to be listed on KOSDAQ.
Bithumb Set to be Listed on KOSDAQ
Upon contacting the Bithumb official to enquire more about the impending KOSDAQ listing, the crypto exchange failed to provide further details on the listing. However, the Bithumb team admitted that the crypto exchange selected Samsung Securities as its underwriter in the previous month. Bithumb expects its IPO to be listed on KOSDAQ in Q1 of 2025.
Even though the Bithumb team failed to provide a detailed report on the upcoming IPO listing in KOSDAQ, there was a swindling rumor that the crypto exchange might also consider listing on Korean Composite Stock Price Indexes (KOSPI).
Notably, KOSDAQ corresponds to the US Nasdaq, while KOSPI mirrors the features of the S&P 500.A report featured on the South Korean news outlet Edaily demonstrated that before the listing on the KOSDAQ, it was important for Bithumb to engage an underwriter to assess the risk associated with the IPO offering.
The underwriter will provide financial security to Bithumb before it goes public on KOSDAQ. Remarkably, the listing of Bithumb IPO on KOSDAQ aims at cementing the crypto exchange at a considerable market position in the Asian country. For the past years South Korea has been seeking to position itself as a crypto-friendly state.
Bithumb Seeks to Overtake Upbit in Market Shares
Recent statistics demonstrated that South Korea has experienced increased crypto activities in the past few months. According to the Korean financial intelligence unit (KoFIU), the crypto activities in the Republic of South Korea generated $18 billion in Q1 of 2022.
KoFIU noted that the South Korean-based crypto exchange outperformed the global crypto exchange in daily trading volume. In August, Upbit outperformed the best-performing crypto exchanges in the world, such as Binance and Coinbase, in daily trading volume. The exciting growth of Upbit Exchange has positioned the crypto exchange as the largest in trading volume in South Korea.
Bithumb emerged as the second-largest crypto exchange in the region after Upbit. In the pursuit to gain dominance in the crypto sector Bithumb plans to explore viable opportunities to overtake its top rival, Upbit.
The listing of Bithumb on KOSDAQ aims at positioning the firm at a pivotal point to blossom in terms market share. The listing of Bithumb on KOSDAQ came when the crypto exchange faced some significant transition in leadership due to ongoing legal charges against the top officials.
Legal Charges Facing South Korean Crypto Exchanges
A few months ago, Bithumb officials were accused of price manipulation and orchestrating fraudulent schemes. In February, Kang Jong-hyun, the co-founder of Bithumb, and his brother Kang Ji-yeon were arrested for embezzlement of company funds.
Subsequently, Bithumb chief executive Lee Sang-jun faced potential action for engaging in bribery. Following several legal charges battling Bithumb, the crypto exchange suspended the CEO from his advisory role at the board of directors, citing the current disciplinary actions.
Editorial credit: Ralf Liebhold / Shutterstock.com
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