Bithumb DEX is Newest Decentralized Exchange to Open as Bithumb Expands Digital Asset Trading Platform
Digital Asset Trading Platform Bithumb Announces Intention To Operate A Decentralized Exchange
Bithumb is based out of South Korea as a major digital asset trading platform. In a move that looks influenced by Binance’s recent annoucement of a decentralized exchange (DEX) for next year, Bithumb is now following suit by announcing their own DEX. This launch is expected to occur within the next few months.
The mission of the Bithumb DEX appears to be to focus on the global economy for cryptocurrency. However, it will run under an overseas subsidiary that isn’t within the bounds of South Korea. To help with the application of the new DEX, One Root Network (RNT) is offering their support and help to make this a possibility. They already have experience with the launch of a new exchange in 2018.
One source, that claims to be close with the Bithumb DEX project, said that the company has a mid-term plan in place to help with the expansion of a user base. With this plan, their projected deployment of the exchange will come within the next few months.
The source added, “Bithumb is one of the leading global exchanges in terms of transactions but it is true that most of its users are Korean. The latest decision seems to be the company’s strategy to compete with other leading exchanges in the global market by opening a decentralized exchange that receives attention in the global market.”
Both Binance and Bithumb are major exchanges that support impressive profit margins, even with only the consideration of the fees they assess. Every trade and transaction require a fee to process it. With a decentralized exchange, there is no third-party service provider, which means there’s limited involvement during the transactions.
Having a hardcode for transaction fees is one of the few ways to have recurring transaction fees established without a mediator. These fees are often used as a way to entice developers and finance operations to get involved more deeply.
Binance CEO Changpeng Zhao was recently in an interview to discuss cryptocurrency on CNBC’s crypto trader. He discussed how he feels that DEXs are the way to usher the crypto market into the future. He said, “I believe that decentralized exchange is the future. I don’t know when that future will come yet. I think we’re at an early stage for that, so I don’t know if it’s a year, two years, three years, or five years. I don’t know but we got to be ready for it.”
Based on how Bithumb is handling the integration of international customers, it is clear that their main competition will be Binance. However, that doesn’t mean that they don’t have the drive and substance to do so. Their main advantage seems to be the fresh look at getting involved with the local investors.
Hester Peirce, a US Securities and Exchange Commissioner, said that the investments in this area of the market requires knowledge. Unfortunately, there are many investors that don’t have a firm grasp on navigating the network. She added, “This complexity means that only a very particular type of investor can pursue the diversification opportunities such assets can provide. Entrepreneurs are developing new products through which people can access cryptocurrencies indirectly or hedge their cryptocurrency holdings. Bitcoin futures, for example, began to trade recently.”
By investing in a DEX, users need to have much more of an understanding than they would need with an average crypto exchange. There’s no service providers or other entities to handle disputes, though they are typically more secure. Bithumb users will probably find that to be a great advantage, considering how they’ve succumbed to too many security breaches and hacking attempts in the past.