Bithumb’s Operator Secures $200 Million USD From Japanese Blockchain Fund
The Blockchain Exchange Alliance (BXA), which operates the high-profile crypto exchange Bithumb, has recently received an investment of $200 million USD from the Japanese ST Blockchain Fund. According to reports, the company will use these new funds to expand its services globally.
Bithumb’s parent affirmed that the fund shared a vision with it and that they believed in the importance of creating a global digital exchange that can effectively transfer value across international borders.
The investment has come at a great time. Bithumb is currently the largest crypto exchange in its country, South Korea. However, the company lost $180 million USD during 2018, mostly due to the conditions of the bear market, which affected exchanges less than other businesses, but still had quite a profound impact in them.
Despite the bad conditions of the year, the market was shocked to see such awful results, as Bithumb had a record profit in 2017: around $373 million USD.
Time For The Expansion
BXA recently had a reverse merger with a U. S.-based company. This has opened a juridical backdoor for the company, which is based in Singapore, to list itself in the U. S. market without having to follow the long road of creating its own Initial Public Offering (IPO).
Before receiving the funds for a full expansion, the company was already eyeing some alternative in order to expand the reach of its business. For instance, it has launched an over the counter (OTC) desk in February, which was aimed at institutional clients. The company had also opened a new office in London last year and a branch of its business in the United Arab Emirates.
Now, with the new funds, the company will be able to eye the U. S. market and to start a business there, which will certainly be a very important move for its global expansion.
Thefts: Not Everything Is Great At Bithumb
Despite receiving the money for the expansion, there are currently several security concerns looming over Bithumb. Earlier in April, the company lost $19 million USD in theft and, before that, the company lost $30 million USD.
This shows that maybe the exchange’s security is below the expected standards, which could mean that it would be a better idea for Bithumb to upgrade its own security than to expand so quickly.
However, a third party audit has recently affirmed that the funds of the clients are secure, despite the recent losses.