Another new beginning, Bithumb sold for $353M to a Singapore consortium

12 Oct, 2018
by Fifi Arisandi
Another new beginning, Bithumb sold for $353M to a Singapore consortium

Bithumb is sold for $353 million to a Singapore-based consortium, BK Global Consortium.

No other exchanges can represent the volatility of the crypto space better than Bithumb. After a major hack that costed the company $30 million, the exchange went from one of the world's biggest exchange to be mysteriously delisted from the world ranking, while still surprisingly managed to gain $35 million profit despite losing 40% volume due to new registration halt. 

The exchange was also reported to become the cause of the market recovery a couple of months ago from their alleged Kimchi Premium, while also being suspected for getting huge daily fake volume from wash trading practices by some traders. 

This time, Bithumb made the headline as the exchange is reported to have been bought by the Singapore-based BK Global Consortium for $353 million. While it seems like a huge number, it's actually lower than the amount from an appraisal conducted in February 2018, around $880 million.

According to The News Asia, the Consortium bought 50% of the share from 10 shareholders, plus 1 share of BTC Korea Holdings, which is the largest shareholder of Bithumb. 

With the investment, BK Global Consortium seeks to reduce commissions of the current e-commerce settlement system using Bithumb's blockchain-based platform.

Quoting an anonymous official of the Consortium, "E-commerce companies such as Amazon and Alibaba are receiving large commission fees, which have become an issue for consumers. Blockchain payment systems can reduce those commission fees."

It seems like Bithumb manages to prove to the public that no matter how messed up the past is, there's always a chance for a new beginning. 

Read more: Crypto exchange giant Bithumb launching global decentralized exchange

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