Crypto Exchange Bithumb Attracts Over 25% of South Koreans Ahead of IPO

South Korean crypto exchange Bithumb is gradually regaining its market dominance in the country. According to a recent Bloomberg report, the crypto custodian platform now holds around a 25% market share of South Korea’s crypto trading volume. Notably, this increase comes amid the exchange’s plans to go public.

Bithumb’s Way Back Up

Founded in 2014, Bithumb initially led the South Korean crypto market with a 70% market share. However, things went sideways when it suffered a $30 million security breach in June 2018. Many local investors migrated to Bithumb’s rival platform, Upbit.

Since then, Bithumb has explored various marketing ideas to regain its losses. One of them was the zero-fee trading promotion, which helped the exchange reach a 36% market share peak in January 2024. While the exchange’s market share has slightly decreased since then, it now maintains a 25% market share.

Another strategic move that Bithumb is exploring to grow its market share is becoming a public company. With Samsung Securities as lead underwriter, the exchange is set to go public on the South Korean stock market by the end of this year. Most users are likely flocking to Bithumb to position themselves for the upcoming public listing. Going public will position Bithumb among global crypto exchanges that have gone public, like Coinbase (COIN).

The South Korean exchange also plans to enhance its staking services and list new tokens. However, Bloomberg revealed that Bithumb has no immediate plans for international expansion due to regulatory and security concerns.

South Korea’s Crypto Market

South Korea is home to various crypto enthusiasts and traders, many of whom are interested in retail trading. Reports show that local crypto users are mostly interested in altcoins, especially those themed around blockchain games. Bloomberg disclosed that over 18 million South Koreans, roughly one-third of the country’s population, have invested in crypto.

Recognizing the significant interest in crypto, South Korean presidential candidate Lee Jae-myung said he would promote crypto adoption by launching a stablecoin pegged to the country’s sovereign currency, the won. He stressed that this would prevent national wealth from leaving the nation.