Bithumb next in line to launch decentralized exchange
Decentralization hype in the cryptocurrency industry seems to inspire the creation of new decentralized exchanges in the cryptocurrency market. Bithumb, the South Korean crypto exchange has announced a new decentralized exchange [DEX] to target a global audience. The exchange is eyeing greater overseas expansion amidst the regulatory proceedings that are being carried out by the South Korean Govt. This development follows prominent crypto exchanges such as Binance and Upbit working on their own decentralized platforms
Bithumb plans to become the world’s first large-scale centralized exchange that will provide decentralized trading services. On October 1, Bithumb and OneRoot Network [RNT] formally signed a cooperation agreement to access OneRoot’s R1 protocol to build a decentralized trading platform. The OneRoot project aims at building industry infrastructure and business systems based on blockchain.
“Bithumb DEX will be operated by its overseas subsidiary. The company is working together with RNT only in the decentralized exchange sector,” said an official from Bithumb, according to a report.
Unlike a centralized crypto exchange, decentralized crypto exchanges don’t hold cryptocurrencies directly. In a DEX full control of the coins lies with the investor himself. Therefore, the safety and security of the investments are guaranteed by these exchanges. Bithumb has been attacked by hackers in the past and opening a DEX might be able to bring back the lost trust and customers to the exchange.
According to local news agency Yonhap, Bithumb collected a total of $270 million in revenue in the first half of this year and earned $194 million in operating profits in the same period. It has been a rough year for the exchange, which saw a hefty amount of $28 million being imposed on them for tax evasion, although no wrongdoing was found later on. As a result, the daily trading volume on Bithumb, once the world’s largest cryptocurrency exchange by volume, witnessed a considerable decline this year.
Image via Shutterstock
Join our telegram group