Bithumb issues his own token

Bithumb, South Korea's biggest cryptocurrency exchange, intends to issue its own coin called Bithumb Coin, during an Initial Coin Offering. TokenPost, a local media, reported this news on April 19.

Cryptocurrency platform Bithumb launches Singapore token

According to the media, Bithumb will sell his token in Singapore to escape the restrictions of his home country. South Korea issued a ban on ICOs, because of their lack of supervision, a measure justified by the risk of financial fraud, in September 2017. The Financial Services Commission has stated these reasons motivated by the strict measure of the government.

However, plans to legislate on ICOs were revealed by the financial authorities last March. The government tends to allow ICOs while the FSC remains skeptical. By requiring Know Your Customer (KYC) and anti-money laundering systems, local authorities could lift the ban on ICOs.

Meanwhile, the Bithumb ICO does not find its place on the South Korean territory. It will follow the movement of ICon (ICX) and other companies in order to properly launch its token - Singapore being the most likely destination.

"We know that Bithumb Coin is running at a local branch acquired by Bithumb's subsidiary. Details such as timing and specific size have not been confirmed yet, " said a spokesperson for Bithumb.

According to sources, the Bithumb Coin ICO will target large institutional investors at the expense of regular or average individual investors.

Last year, this fellowship was the victim of a security breach. Cyber criminals have stolen billions of dollars from its users.

A strong trend

Bithumb is not the first cryptocurrency exchange to issue its own token. Huobi, a Chinese stock exchange, has issued its Huobi Token (HT) token, an ERC20 token, earlier this year. Binance and Kucoin also joined the movement.

Binance is the perfect example of how scholarship chips can boost the company's profits. Binance Coin (BNB) has a proven track record and has been successful, while offering the opportunity to trade at a reduced price. In addition, the company rewards chip holders each month. This initiative, in addition to encouraging investment, increases the scarcity of the token.

Each quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of the entire BNB (100 million). All redemption transactions will be announced in the Blockchain. We will eventually destroy 100 million BNB, leaving 100 million.

KuCoin Shares (KCS), the KuCoin token, aims to reward passive income holders. The stock market shares the gains from fee collection, another method that seems to work so far.

It is very likely that Bithumb Coin would work the same way.

What do you think of cryptocurrency trading that launches their own chips? Do you think that tokens such as BNB, KCS and HT are good investments? Comment in the comments section below.

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