Report: Bithumb Named Currently the Top Exchange with a Slim Lead

Dec 07, 2018 at 22:59

Bithumb, the famous crypto exchange from South Korea, has recently become the top exchange in terms of trading volume as it hit a daily trading average of $1.2 billion despite a dropping number of daily visitors.

According to CryptoCompare’s November Exchange Review, the South Korean company’s daily trading volumes surged by over 280 percent from $323 million in September to October to as much as $1.2 billion amid a 20-percent decrease in the exchange’s daily visitors.

The report noted that Bithumb’s trading volumes surged after Singapore-based BK Global Consortium acquired a controlling share in the exchange for $350 million as it implemented a “series of airdrop competitions, raffles, rebates, and other programs” to bring in non-Korean users.

“A volume increase on an exchange, combined with a decrease in visitors, may point towards incentive programs such as competitions, trans-fee mining, rebate programs or similar,” the study further read.

However, CryptoCompare mentioned that Bithumb’s trading volumes indicated wash trading activity was taking place as there are large orders quickly filled in short intervals on various trading pairs. Likewise, order books are being unstable.

The company also hinted that the lead could be temporary as the exchange also had a 120 percent fee payback promotion last month, which saw users essentially wash trade against themselves to collect an extra 20 percent on their volume.

Earlier this year, the Bithumb partnered with fellow South Korean company, WeMakePrice, to start accepting 12 cryptocurrencies as payments.

It was the first time a domestic online shopping platform to introduce virtual currency as payments.