Smaller crypto exchanges are waiving trading fees to challenge Upbit and Bithumb, backed by major financial investors.
Cryptocurrency exchange Coinone has joined Korbit in eliminating trading fees, as smaller exchanges backed by major financial players step up efforts to win customers despite a slump in crypto trading volumes.
Coinone eliminated trading fees for all crypto trading starting at 11 a.m. Wednesday. The exchange offers a 30-day zero-fee voucher that users can renew an unlimited number of times.
Digital X, the operator of Korbit, made a similarly aggressive move on Monday when it announced that it would waive trading fees on all cryptocurrencies in its won market for a full year through Aug. 24 next year. No separate application is required.
Coinone accounted for 2.39 percent of trading volume on Korea’s won-based exchanges on average this month, while Korbit held a 0.52 percent share, according to cryptocurrency data provider CoinGecko. Upbit and Bithumb, by comparison, accounted for 68.11 percent and 28.95 percent respectively — a combined share of about 97 percent. Korbit and Coinone, smaller rivals seeking to challenge that dominance, have chosen to sacrifice trading fees, a core source of revenue, for a shot at greater market share.
Behind the aggressive moves lies a broader shift in the two exchanges’ shareholder structures.
Mirae Asset Consulting gained management control of Korbit after it acquired more than a 97 percent stake in the trading platform last month. It has also committed to injecting an additional 50 billion won ($36 million) into the exchange.
Park Hyeon-joo, chairman and global strategy officer of Mirae Asset Group, met with Digital X employees Wednesday to personally lay out his vision for the company’s digital asset business.
Korea Investment & Securities acquired a 20 percent stake in Coinone in May and entered into a strategic partnership with the exchange. Since July, Coinone users have also been able to open Korea Investment & Securities domestic stock accounts and trade Korean shares through the Coinone app.
BY PARK YU-MI [kim.hayoon1@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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