Bithumb Launches Decentralized Exchange
Bithumb, the second largest crypto exchange of South Korea, is ready to launch its own decentralized exchange (DEX). The announcement comes amidst many other companies doing the same, including binance, the largest exchange in the market.
This new initiative was made in a partnership with One Root Network (RNT), which provided a decentralized protocol based on the Ethereum technology for the company in order to make the decentralized transactions. The R1 protocol is used to separate order matching and order execution and it is believed to improve the efficiency of the whole process.
The liquidity and the order data of the platform will also be shared with all other R1-based exchange platforms, so this means that there will be a big liquidity pool right from the start of the exchange.
As the crypto sector is getting more attention from regulators, Bithumb has decided to use an overseas operator in order to manage the exchange to avoid legal trouble in South Korea. This way, the company can avoid the local restrictions imposed by regulators. The information of all transactions will be stored on the blockchain.
It is also important to notice that the exchange was recently acquired by BK Global Consortium for the value of $354.09 million USD. This means that not only the exchange is trying new things, but its management is also changing at this time.
Airdrops and Promotions
As part of the launch, Bithumb is having some promotions. The company is committed to giving $100,000 USD (500 ETH) in rewards via airdrops. The people which will be eligible for getting the rewards are the ones who will trade the most in the company’s new platform.
Also related to airdrops, Bitumb is promoting the Super Airdrop Festival to mark its 5th anniversary. The exchange will airdrop about 100 million won ($88,500 USD) in coins every day during this promotion.
Are Decentralized Exchanges A Trend?
Decentralized exchanges, as you might know, differ from centralized platforms because the users hold their crypto all the time, they do not need to entrust them to third parties at all and can use a P2P system instead. This way, decentralized exchanges are more secure because the users are in charge of their own money.
It seems that there is a sort of a trend of companies creating decentralized exchanges as they need to overcome some issues of centralized platforms. As major players like Binance and Kyber have decided to enter this market, many other companies are launching similar initiatives.
For instance, Waves DEX was launched back in July after hackers hijacked the exchange’s site, so decentralized solutions can be used in order to get more secure.
The founder of Binance, Changpeng “CZ” Zhao, has recently told Bloomberg that they have less control in decentralized exchanges and this is both good and bad. It is easier to get a listing in these exchanges, so this obviously means that more scammers will be attracted to this kind of business.