Bithumb Will Issue Its Own Coin
The Bithumb Coin
One of South Korea’s most important cryptocurrency exchanges, Bithumb, is planning on creating its own internal digital currency, which will be called BITHUMB Coin.
But this coin’s initial coin offering (ICO), cannot be held in the exchange’s native country of South Korea, seeing as the East Asian state banned this fundraising system last year. Thus, Bithumb will take the example of Icon (ICX) and others and launch its ICO abroad, with Singapore being considered as the location.
“We know that the Bithumb coin is underway at a local subsidiary acquired by Bithumb’s subsidiary,” said a person associated with Bithumb has reportedly stated. “Details such as the specific schedule and issue size have not been confirmed.”
Some believe that BITHUMB Coin’s ICO will target prominent institutional venture capitalists, rather than regular virtual currency investors.
Bithumb made headlines last year when it experienced a big security breach, in which hackers made off with billions of won.
Other Exchange-Based Coins
Bithumb’s ICO announcement comes after Huobi, the Chinese cryptocurrency exchange has stated its plans of issuing its own domestic token, called Huobi Token (HT), which will be an Ethereum- based ERC-20 standard token.
Major cryptocurrency exchange Binance already issued its own token, which proved to be pretty popular since its release. Binance Coin (BNB) lets users trade on the platform at considerably discounted prices, as the company gives token owners every quarter with a coin burn — which is to decrease the total number of tokens and it will possibly result in an increase in value.
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining,” read the company’s whitepaper.
KuCoin’s own in-house token, KuCoin Shares (KCS) functions in a similar manner, rewarding holders with passive income by sharing revenue made from collecting fees.
The BITHUMB Coin will probably be used in some way like the above-mentioned tokens.