Vidente quashed claims on Nexon collaboration

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  • The claim on the partnership of Vidente with Nexon for the acquisition of the largest South Korean crypto exchange is proved fake
  • After Vidente quashed the claims, its stock price faced a significant decline
  • The intention of Nexon acquiring managerial rights of Bithumb does not surprise the retail investors
  • Bithumb Holdings and Samjong KPMG has plans to sell the acquisition of the exchange for higher prices

On Thursday several local news outlets of South Korea reported that Nexon, gaming giant, has joined hands with Vidente, a significant shareholder of Bithumb, a global digital exchange platform. Following those reports, it was revealed that Nexon is to acquire the managerial rights of Bithumb, from Bithumb Holdings, for 50 million won ($457 million). According to a recent report from the news-outlet TheKoreaTimes, it is revealed that the information was allegedly false. Vidente quashed claims in a regulatory filing on Friday, a day after the local media reported managerial rights acquisition.

The news affected the stock price of Vidente

After the news got spread in the nation, Vidente stock’s price hit an intraday high of 11,350 won earlier Friday. Vidente stated in its filing that they are yet not sure whether they should sell their stake in Bithumb Holdings or acquire an additional stake. However, after Vidente disclosed that the claims of partnership for acquisition of the exchange are not valid, the price of the stocks fell massively, closing at 10,250 won. However, the amount was up by 17.28% from the previous session’s close. 

The intention of Nexon did not surprise retail investors

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Although the news was not confirmed and later on declined, quashed by Vidente, the retail investors trusted it. The reports also mentioned that Kim Jung-ju, the founder of Nexon, has signed a memorandum of understanding with the seller earlier this month. Following the report, Nexon could have bought a 65%stake in Bithumb. However, the investors’ main reason for trusting the news is that, back in 2017, Nexon (NXC) acquired a 65.19% stake in the nation’s first cryptocurrency exchange Korbit for 91.3 billion won. Following the same year, NXC also acquired 80% stake in the European cryptocurrency exchange, Bitstamp for $400 million.

Bithumb is careful to choose a preferred bidder 

Lee Jung-hoon, the board chairman of Bithumb Holdings, supposedly holds a significant number of shares in DAA and BTHMB Holdings, having 40.7% of the stake. On the other side, Vidente owns 34.2% of the shares but has only 10.3% of stake. However, after hiring Samjong KPMG as an underwriter, Lee planned to sell his controlling stake. Observing the current bullish market, Bithumb Holdings and Samjong KPMG seem more sceptical to choose preferred bidder to acquire Bithumb Korea. Indeed, they intend to sell a significant crypto exchange for a higher price.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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