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- According to sources, FTX, a crypto derivatives exchange, is attempting to acquire Bithumb, a South-Korean based crypto exchange.
- FTX is heavily working on acquiring all the competitors in the Web3 space.
- General Partner at early FTX, Chris McCann, says that Bankman-Fried is not trying to do any of this due to some service or internal goodness.
The Bithumb Acquisition
This quarter has proved to be one of the worst crises in the history of crypto markets. If we look at it carefully, it’s not something happening for the first time. As we know, markets are run by the principle of supply and demand, in other words: greed and fear. And just like any other economic crisis, the companies with high cash reserves are trying to dominate struggling competitors by multiple acquisition offers.
According to sources, FTX, a crypto derivatives exchange, is attempting to acquire Bithumb, a South-Korean based crypto exchange. Sam Bankman-Fried runs FTX. Sources also say that the acquisition planning has been going on for months. An important fact to note is that we don’t know the potential valuation of Bithumb yet. FTX is heavily working on acquiring all the competitors in the Web3 space. The company is also in the talks of acquiring BlockFi for $240 million.
The Unbounded Ambition
General Partner at early FTX, Chris McCann, says that Bankman-Fried is not trying to do any of this due to some service or internal goodness. The acquisitions are the result of his goals of dominating the world market. He stated that ‘his ambitions know no bounds. Bithumb, established in 2014, has become a part of South Korea’s ‘big four’ cryptocurrency exchanges. The other three named exchanges are Upbit, Coinone, and Korbit. Bithumb is reportedly valued at 1.27 trillion won, which is $969 million. The data is from last year. According to sources, the daily trade volume of the exchange is about $560 million.
Because of the Terra Collapse Drama, local prosecutors raided several South Korean crypto exchanges a couple of days ago. Bithumb was one of them. Lee Jung-Hoon was accused of defrauding $100 million from Kim Byung Gun.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
