Javier Sim, Managing Director of Bithumb Global: We Are Not Going to Launch an IEO platform
In anticipation of the launch of local versions of the trading platform, Javier Sim, head of Bithumb Global, reveals what local markets can be called the most promising in terms of crypto trading and why Bithumb Global is not going to launch an IEO platform.
– How do you assess the situation on the South Korean scene right now?
– South Korea is one of the largest cryptocurrency trading markets. Although the market has undergone significant turbulence in recent years and continues to change, South Korea remains one of the largest markets.
One of the key changes in recent years, with last year’s crypto winter contribution, is that investors began to be more mature in assessing the prospects of this market. They think twice before they invest and they tend to invest only in worthwhile projects with strong communities. Investors in South Korea follow this international trend and invest only in high quality group projects that really have value. Such projects are able to survive any cryptocurrency market crash.
– Which local markets do you consider to be the most promising in terms of your global expansion campaign?
– First of all, these are South Asian emerging markets such as Vietnam and Indonesia. In my opinion, these are the most promising local markets in terms of new users, newcomers. And that’s what we are persuading in our global expansion campaign. Especially, Vietnam has the highest GDP growth currently. Last time when I visited this country, several years ago, a lot of people there even did not have smartphones. And things look really different now. Their life is getting better. And logically they are looking for some kind of investment. When we talk about investments, cryptocurrency is a market with a very low barrier to enter. I mean that many investors from these markets could not assess traditional stock market due to their low income. To invest in traditional stocks, you need a bank account, you need to comply with very strict laws worldwide, you have to verify that you have this bank account to trade stocks. Cryptocurrencies are especially good for those investors from these emerging markets as the entry barriers are quite low. To purchase such tools, you need to open special bank accounts, go through strict procedures to confirm sources of income, and so on. Therefore, I see great prospects for Bithumb Global and the entire crypto trading in these countries.
– I’ve heard your intentions to open the door of Bithumb Global to Russian users as well. Do you consider Russia a promising market too?
– The reason why we decided to open the doors for Russian users lies in the fact that this is a large promising market. This is one of the largest countries in the world from the economy point of view and from other perspective. Russian investors have a very mature approach to investment decisions and show a deep interest in cryptocurrencies. Russian users were among the pioneers in this market.
I consider Russia to be one of the promising markets, especially when it comes to countries outside the South Asian region.
Furthermore, I highly appreciate the quality of many Russian projects. Russians do have a lot of projects, really good projects. I want to say that there are in Russia not only highly professional investors, but also high-quality projects that are able to contribute to the development of the entire crypto industry.
I believe that the arrival of Bithumb Global to the Russian market will create a kind of synergistic effect, strengthening the mutual ties between the Russian and South Asian crypto communities. This will give a certain positive impetus to the entire market.
– How will local users and traders benefit from using Bithumb Global? What specific options will be available to them?
– Bithumb Global offers options to buy cryptocurrencies via credit cards like VISA or MasterCard. Also, Russian users will have access to high-quality projects with good liquidity and wide local communities represented on Bithumb Global. Russian users will be able to join these communities.
I expect to meet our future Russian users and explain them more features and options of trading on Bithumb during my visit to Moscow and Saint Petersburg in mid-October.
– What steps have been taken recently by the exchange in terms of improving security standards?
– Security is one of the most important fundamental criteria taken into account by traders while choosing a platform for trading. For Bithumb Global, the security of user assets is a priority. Our team has experience in handling crypto for years. We use cold wallets for storage, and the architecture of our wallet meets the highest standards of quality and security. We are constantly updating our systems in response to emerging threats.
Our security skills have been tested for many years, and we are pretty confident about our security level.
– How do you evaluate new assets that were recently listed on the exchange? Can you tell more about the listing committee work?
– First of all, we look at the fundamentals of the project. I mean, why a new asset has to be accessed in the world, who will trade this coin, who will hold long-term investments in this asset, what liquidity this asset has. It is very important whether the project is global or focused on one local market. A coin that wants to be listed must have a real market value. That is, in short.
– One of the unique tools of Bithumb Global is Staging. What is it and how does it work?
Staging is a special instrument that can be used while introducing a new coin. It allows projects to attract the attention of investors. Investors are also rewarded for using this tool. It works as follows: the user can transfer funds to our special wallet where these assets remain frozen for a limited period of time. In such way investors declare their interest in the project. They will be rewarded by lottery tickets. We enable our users to have a chance to win the token. It is an absolutely fair lottery as it is conducted automatically by the system. So basically the users only have to put their assets and hold them in our auction for a short period and then they get a token without any fees. Staging helps us, as a stock exchange, encourage new projects to thrive and fuels industry development. Projects are given the opportunity to loudly declare themselves to investors, to attract their attention and build a strong community around them.
– Many traders wonder why Bithumb did not follow this IEO trend? Why did not you use this crowdfunding mechanism?
– We are very against such a crowdfunding mechanism as IEO because exchanges do not have to do IEOs. The coin that goes via IEO is usually a newly born coin of a young project looking for funding. And normally the price of these coins during IEOs are much high than the price of listing and the initial trading period. All this carries certain reputational risks for the exchange. Bithumb prefers to protect investors from such high-risk investments. We rather seek for projects that seem to have sustainable growth.