[Korean Exclusive News]
Author: Shin Yi Jin, South Korea
Following UPbit, Bithumb is pumping a number of new coins in their listings. Within the last two months, the type of coins being transacted on the website has almost doubled.
According to a data from the cryptocurrency industry on 8 May, Bithumb has listed 10 new types of coin including Icon, Vechain, Tron, Mithril and Golem since the end of March. As of May 2018, the number of coin types being transacted on Bithumb has increased from 12 to 22.
Bithumb is showing a contradicting attitude from the past when it was very careful about coin listing. At least until the beginning of the year, Bithumb maintained its stand that ‘it is difficult to safely protect the users’ asset if we list unverified coins indiscriminately’.
However, Bithumb has recently changed its stand. The company has increased the amount of transaction for those that experienced a reduction possibly with an aim to get back the title that was taken away by UPbit.
Since January, the amount of transaction has decreased by more than 80% as compared to 2017 due to the pressure from the government with strengthened regulations and real-name policy. Moreover, existing coins such as Bitcoin, Ethereum and Bitcoin Cash are now less attractive to the investors due to their lower price volatility and to some extent a fixed market price. As such, most of the profits come from the commission from transactions and hence the above changes by Bithumb can be interpreted as an effort to draw in some capital inflow with the introduction of new types of coins.
The competition with UPbit has also fuelled the introduction of new coins on Bithumb. After the appearance of UPbit in September last year, Bithumb had to give up its Number One title that it has maintained over the years to UPbit. UPbit increased its share in the market with over 130 types of coins being transacted on its website and within 3 months of its appearance, UPbit managed to clinch the title from Bithumb.
The trend of exchange markets with more types of coins having greater amount of transactions is showing in the international markets as well. According to Coinhills, OKEx, the World’s greatest cryptocurrency exchange market, lists 160 types of coins. The second largest market, Binance, lists 124 types of coins, followed by Huobi which has 103 types listed.
Some people criticises that the indiscriminate addition of new coins might result in a falling credibility of the market. This is because, even though the addition helps in the immediate profit generation, the method exposes asset protection to various risks in the long run.
A personnel from the industry noted that “the introduction of great number of small new coins will result in a fluctuation of prices because of its low starting price and positive future prospect” and that “the indiscriminate listing of new coins can be harmful under current situation where the government has not decided on its direction of the industrial control”.