Bithumb Global today launched a native coin for the Bithumb blockchain network, which is expected to launch in the first quarter of 2020. The exchange will mint a hard cap of 300 million coins, and half the exchange’s revenue will be used to burn 50 percent of BT’s token supply.
According to the official announcement, the exchange will utilize the coin for handling fees, the rights to use Bithumb Chain and future payment mechanisms. Tokens can also be used to vote in chain governance, such as investment decisions for the exchange’s blockchain network.
Bithumb Review: South Korea’s leading crypto exchange
The exchange is based in the capital city of South Korea, Seoul. It was established in 2013 and is managed by a company called BTC Korea Ltd. Bithumb offers cryptocurrency trading that is paired with South Korean Won (KRW). More than 100 trading pairs are listed on the exchange.
The trading volume achieved by the exchange is one of the highest in South Korea. Bithumb Global is currently ranked 34 by the Coinmarketcap in the trading volumes.
Arbitrage is not possible on Korea’s Bithumb.
A couple of years ago, several Chinese traders were arrested for various charges, including money-laundering, for taking advantage of the high premium values of digital assets in the South Korean Market. In order to benefit from arbitrage opportunity on South Korea’s Bithumb, a trader would need a mobile phone, a bank account, and verification for fiat-to-crypto currency trade.
With very strict regulations for opening a bank account and executing a fiat-to-crypto trade, it is impossible for foreign traders to take advantage of arbitrage on Bithumb.