Regardless of their fervent makes an attempt at drawing in new customers by aggressive no-fee advertising and marketing methods, main South Korean crypto exchanges, together with Bithumb, Korbit, and GOPAX, have struggled to safe vital positive factors in market share, latest trade reviews reveal.
The pioneering transfer by Bithumb, swiftly adopted by Korbit and GOPAX, to remove transaction charges did not maintain notable long-term development, with all three exchanges returning to their pre-policy market share ranges. In stark distinction, Upbit, retaining its dominant place, continues to command an 80 % market share, widening the income hole between itself and the aforementioned exchanges by an astonishing thousandfold.
Korbit and GOPAX, each just lately becoming a member of the no-fee bandwagon on October 20 and October 24, respectively, witnessed a marginal uptick in market share, but did not surpass the 1 % threshold. Market observers speculate that GOPAX, the smallest alternate by way of quantity, could encounter challenges in attaining substantial development, as the results of its newest coverage shift proceed to unfold.
Bithumb, the second-largest crypto alternate, skilled a fleeting surge in market share, briefly reaching 30 % following its daring initiative earlier this month. Nevertheless, its market share has now settled round 18 %, highlighting the restrictions of the no-fee advertising and marketing technique in considerably altering the aggressive panorama.
The lackluster response to those exchanges’ promotional endeavors underscores the challenges of interesting to particular person traders, notably when rival alternate Upbit had already established a aggressive charge construction of 0.05 %. Consequently, the no-fee campaigns did not current a compelling worth proposition, notably contemplating the potential inconvenience customers would possibly face when navigating between completely different platforms and adjusting to new operational protocols.
Furthermore, the subdued buying and selling quantity on these exchanges has acted as a deterrent for potential customers, as greater buying and selling volumes facilitate extra environment friendly order matching processes, providing a aggressive benefit within the dynamic crypto market.
DeSpread Analysis, a Web3 consulting agency, emphasised the complexity of consumer preferences throughout the Korean crypto market, highlighting that charge buildings alone don’t dictate traders’ alternative of alternate. Moreover, considerations relating to the long-term sustainability of the no-fee coverage persist, because it undermines a major income stream for these exchanges, elevating questions on their future monetary viability.