Numerous users are interested to find out why South Korea’s exchange platforms like Bithumb and Korbit provide few cryptocurrencies options to customers.
Bithumb is the biggest and most powerful crypto exchange in South Korea. It provides 12 digital currencies: Bitcoin, Ripple, Ethereum, Bitcoin Cash, Litecoin, Dash, Monero, EOS, Qtum, Bitcoin Gold, Ethereum Classic and Zcash. The platform allows you to buy and sell only these specific currencies.
Korbit which is the first crypto exchange in South Korea provides the same amount of 12 digital currencies. The differences between these two platforms is that this one sells additionally the Steem and Augur tokens and doesn’t have available the EOS and Qtum ones.
Why is this happening?
The South Korean market is very sensitive to changes. In order to introduce a new currency on the exchanges’ list, the platforms have to carry out a thorough research on the market demand. Even if some cryptocurrencies are popular and wanted in other countries, in South Korea these can’t even exist on the national trading platforms.
Investors buy digital currencies at a higher price than other markets. For this reason, the exchange platforms have become more cautious relating to the local demand.
Before the officially introducing of the last two currencies: Qtum and Zcash, the Bithumb platform had to carry out for a few months overstretched analysis to make sure that the demand will be at least equal to the market’s offer. For example, on the Bithumb platform there is a higher daily demand for EOS tokens compared to Bitcoins, Litecoin, Ethereum and Zcash coins. It is better to own a required currency at national level than the most popular on the global market.
If the platforms will invest in creating a spectacular offer on the market, but which will not be satisfied, they will lose money and also will not be able to secure the demands with the necessary amount.
Another reason limiting the number of accepted coins by national crypto exchanges is that South Korea does not allow foreign traders to buy or sell with fiat currency.
Do you think that Bitcoin tokens’ requests will outperform those of EOS on the South Korean market in the future?