Tensions are rising between South Korea’s top cryptocurrency exchanges as they compete fiercely for market share. Upbit, formerly the dominant player with over 90% market share, has seen its position slip sharply to just 62% as rivals like Bithumb and Coinone adopt aggressive strategies to boost their competitiveness.
Bithumb in particular has made major gains, surging from under 6% market share in June to over 36% in December. The exchange has offered commission-free trading and relisted the controversial altcoin WEMIX in bids to attract more users. Meanwhile, Coinone recently added support for popular stablecoin USDT.
Upbit now stands alone as the only major exchange still charging commissions on trades. Analysts see its rivals’ moves as acts of desperation, as trading fees are exchanged’ main revenue source.
While competition rises, South Korea’s mainstream exchanges have also banded together as the Digital Asset Exchange Association (DAXA) to block unlicensed rivals. But tensions are still apparent even within this self-regulatory group.
An unknown investors’ group recently reported Bithumb to regulators over its free trading policy, claiming it aims to improperly dominate the market. As rivals aim to chip away at Upbit’s former dominance, attention focuses on how it will respond.
