[Mirae Asset Group × Korbit③] Will Upbit's No.1 dominance be shaken… Redefining the exchange landscape

Source: BlockMedia Original Title: [Mirae Asset Group×Korbit③] Will UBC’s No.1 Dominance Shake? Redefining the Exchange Landscape Original Link: As Mirae Asset Group begins the process of acquiring KOBIT, a domestic digital asset(virtual asset) exchange ranked 4th, attention is focused on whether the previously solid domestic exchange landscape centered around Upbit will experience a seismic shift.

Current Market Share Status

As of yesterday, the leading domestic digital asset exchange by market share was Upbit, operated by Dunamu, with 65.65%. Following that, Bithumb held 29.56%, with Coinone at 3.79%, Korbit at 0.92%, and Gopax at 0.08%. The ranking of the top five exchanges has remained the same at the beginning of the year and recently, but there have been noticeable changes in market share proportions. Upbit’s share decreased from 73.2% in early January to the 65% range by year-end, while Bithumb expanded from 24.6% to 29.56%. Coinone and Korbit also saw slight increases in their market shares compared to the beginning of the year.

These changes are interpreted as a reflection of the competitive gains made by other exchanges during Upbit’s decline following a hacking incident. While Upbit still maintains an undisputed No.1 position, the pace of catching up, especially around Bithumb, is accelerating. Additionally, Gopax, with less than 1% market share, has completed the acquisition process of the world’s largest exchange and is actively expanding its business, which is also a variable. There are also speculations that if Mirae Asset Group, the No.1 in the domestic securities industry, acquires Korbit, the competitive landscape among exchanges could change.

‘Upbit’ Slows Down Due to Hacking, Targeting Niche Markets with Aggressive Marketing

Upbit experienced a decline in market share following a hacking incident on the 27th of last month, involving approximately 44.5 billion KRW. Over the past month, its share dropped by more than 10 percentage points, falling into the 50% range. An industry insider said, “Although some recovery has occurred, Upbit’s market share once fell below 60%,” adding, “During the incident recovery process, deposit and withdrawal restrictions were imposed, and demand seems to have shifted to other exchanges during this period.”

During this period, Bithumb’s market share rose into the 30% range, and other exchanges have been actively targeting niche markets and aggressively attracting customers. Coinone announced a fee-free event until the end of April next year and is also promoting a ‘Santa Rally’ event with benefits worth 200 million KRW to celebrate Christmas. Korbit is currently running an airdrop event for its token ‘LUTSACK’. They also offer benefits such as converting OK Cashback points into Korean won points and purchasing Moca Network(MOCA), which rewards users with Korean won points and Moca Network tokens.

Acquisition by Global Exchanges as an Opportunity for Trust Recovery

Gopax, ranked 5th among domestic exchanges with less than 1% market share, is preparing to leap forward after completing the acquisition process of a global exchange. Gopax has been focused on resolving issues within its platform. Gopax’s ‘GoPay’ is a product where customers’ entrusted coins are lent out to overseas lenders like Genesis, generating interest. Gopax experienced a large-scale unpaid long-term freeze following the FTX and Genesis crises in 2022.

This month, Gopax introduced the XP Membership program, aiming to restore customer trust. The XP Membership program allows users to earn XP through various activities such as signing up, trading, and inviting friends. Higher tiers offer greater discounts on trading fees and incentives. Industry analysts see that, with the completion of the acquisition process, Gopax is accelerating its efforts to resolve past issues and rebuild trust.

Korbit: Will Synergies from Securities Industry Leader Be Realized?

The most watched development in the industry is Mirae Asset Group’s acquisition of Korbit. While there are still significant hurdles, such as the separation of finance and virtual assets(principles, successfully completing the acquisition could create substantial synergies, especially given the convergence of traditional finance and digital finance. The combined expertise of Mirae Asset Securities, the top securities firm, and Mirae Asset Global Investments could enhance Korbit’s liquidity, customer engagement, and product offerings, potentially increasing market share and attracting new customers.

However, attention should also be paid to Upbit’s concurrent growth. Dunamu, the operator of Upbit, is currently pursuing a merger with Naver Financial. The two companies are awaiting approval from financial authorities and the Fair Trade Commission for their merger.

An industry insider commented, “The key will be whether they can successfully complete the merger and how they will generate synergies afterward,” adding, “Depending on that, the landscape of digital asset exchanges could change dramatically within a few years.”