Bithumb has revealed plans to pursue an IPO in the United States later this year amid major company restructuring
South Korea’s second-largest cryptocurrency exchange platform, Bithumb Meta, has rebranded to Bithumb Partners, according to a BizWatch report. As a new entity, Bithumb Partners would focus on short-term stationary investment businesses like debt instruments, convertible bonds, and stocks.
Having a significant share of the Korean market, Bithumb has increased its capital to 30 billion Won ($23 million).
How Bithumb Meta got Liquidated
Bithumb’s setbacks started by dropping to less than 10% market share in 2023, as against 70% in 2017. Competitors slashed Bithumb’s share by offering lower fees and services alongside aggressive marketing strategies.
According to an earlier BGECrypto report, a core competitor, Upbit, now handles over 61% of Korea’s daily crypto trading volume, exceeding the $1.17 billion daily transaction mark. Despite various setbacks, Bithumb kept improving.
In 2017, Bithumb lost users when its database was breached due to cryptocurrency theft and repeated server outages. This aided questions on the platform’s professionalism and credibility, frightening investors.
Bithumb had higher transaction fees, while competitor Upbit reduced theirs to around 0.05%, fueling its user exodus.
Upbit, according to the report, has a virtual monopoly over the local market. In contrast, Bithumb had a complicated deposit and withdrawal process. Upbit, on the other hand, partnered with Kbank to make fiat and crypto transactions easy. By Q4 2024, investors in Bithumb Meta had liquidated their holdings.
In the new entity, Bithumb Partners is solely owned. This came from an injection of 1 billion KRW ($6.8 million) into the rebranded entity. Investors that were handed over include SK Square, CJ OliveNetworks, and LG CNS.
Bithumb Partners: IPO and Mode of Operation
Bithumb Partners will focus on short-term investment using internal funds from the exchange.
Im Tae-Seong will take key positions as part of the restructuring moves, replacing Bithumb Meta’s founding management team.
This year, Bithumb Partners will undertake an initial public offering in the United States to fulfill its long-standing plans.
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