TL; DR Breakdown
- Bithumb plans to float NFT marketplace
- Partnership issues generate buzz
- The exchange wants to rival other exchanges across Korea
The activities of the NFT sector have become something that can no longer be ignored across the crypto industry. With more than traders entering the sector, exchanges and other entities are building marketplaces. One such is Bithumb, a Korean-based crypto exchange set to float its NFT marketplace in the coming days. According to the update, the company will collaborate with LG CNS, a sister company under the LG brand umbrella.
Partnership issues generate buzz
The move was communicated to reporters in a recent interview granted by the head of Bithumb, Heo Baek-young. In the interview, the Bithumb CEO agreed that the move was needed to compete with its core rivals across the Asian country. He also mentioned that NFT would be the future of the crypto sector, and with a marketplace, it will be easier to drive adoption across the world.
However, Bithumb has remained mum over a potential list of artists that have agreed to debut their works on the platform. Although major reports cited LG CNS as the company’s potential partner in the project, some other signs pointed far away from it. For example, reports claim that Bithumb could partner with other companies alongside LG CNS.
Bithumb wants to rival other exchanges in Korea
If Bithumb actualizes its dreams of launching its NFT marketplace, it will place the company firmly in one of the controlling seats in terms of exchanges in Asia. Presently, Bithumb has cemented its place as the second-ranked exchange across Korea. This is a result of its mammoth trading volume. However, Upbit has shown no sign of relenting as the exchange boasts about $1.7 billion every 24 hours. Bithumb, on its boats of $730 million in trading volume over the same period. Upbit already took the initiative of launching an NFT marketplace last year.
The company teamed up with popular Korean sensation BTS as the group became the first artists to commit to the platform. However, Korbit was the first crypto exchange to launch a marketplace in the country, and the exchange currently sits two places in fourth, boasting of a $7 million trade volume. NFT marketplaces in Korea have enjoyed massive patronage because users prefer to mint their digital arts on centralized exchanges. Compared to them, other global participants prefer to use platforms like OpenSea. This is confirmed by the activities on the Klaytn blockchain, which is disappointing.