FTX Mulls Buying Top South Korean Exchange Bithumb

Key Takeaways

  • FTX is in talks with Bithumb a couple of potential acquisition, a brand new report from Bloomberg signifies.
  • The 2 companies have reportedly been in superior talks for a number of months. A Bithumb spokesperson commented that nothing could possibly be confirmed “at this stage.”
  • FTX appears to be on a buying spree; it not too long ago acquired crypto lending platform BlockFi after it suffered a liquidity disaster.

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Main crypto trade FTX is reportedly negotiating a possible acquisition of prime South Korean trade Bithumb. No deal has been confirmed as of but.

Superior Talks

Sam Bankman-Fried’s crypto empire retains increasing.

In accordance with Bloomberg, world crypto buying and selling platform FTX is in superior talks to purchase prime South Korean crypto trade Bithumb. Whereas no deal has been introduced but, each corporations have allegedly been in discussions for a number of months.

When requested for remark, a Bithumb spokesperson said nothing could possibly be confirmed “at this stage.”

Bithumb is among the prime centralized crypto exchanges in South Korea, together with Upbit and Coinone. Established in 2014, it at the moment lists 188 cryptocurrencies. Knowledge from CoinGecko present that Bithumb reached over $3 billion in each day buying and selling quantity in late November 2021; the quantity has now come right down to roughly $558 million.

The collapse of distinguished crypto hedge fund Three Arrows Capital has led a number of crypto corporations to wrestle with liquidity, with a few of them (resembling crypto lending agency Celsius and crypto trade platform Voyager Digital) pausing buyer withdrawals and submitting for chapter.

FTX CEO and co-founder Sam Bankman-Fried, nevertheless, has taken on a brand new function as the crypto trade’s lender of final resort. Via his varied corporations, Bankman-Fried has supplied credit score to Voyager (pre-bankruptcy submitting) and bought BlockFi. He has additionally said that over $2 billion is able to deploy for additional bailouts.

The Bithumb acquisition appears unlikely to be attributable to latest market turmoil, contemplating talks have allegedly been ongoing for a number of months. Slightly, FTX could possibly be trying into increasing its presence in South Korea in a transfer harking back to its 2020 buy of Blockfolio. 

Disclosure: On the time of writing, the writer of this piece owned ETH and several other different cryptocurrencies. 

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