Bitcoin trading on Bithumb has surged to an impressive $3 billion, showcasing a substantial volume increase. In contrast, Upbit is encountering challenges, with its trading volume struggling to surpass $1 billion.
Bithumb made a strategic move by becoming the first major Korean exchange to eliminate all transaction fees, aiming to boost its presence in a market largely dominated by Upbit.
Previously charging trading fees ranging from 0.04% to 0.25%, Bithumb implemented the zero-fee policy for all supported digital assets in October of the previous year.
This move holds significant weight, considering that Bithumb willingly sacrificed its primary source of revenue. This is particularly noteworthy in light of the reported operating loss of 3.4 billion won ($2.5 million) in the second quarter of that year.
The platform chose to prioritize the expansion of its customer base over immediate revenue collection, given its consistent decline in earnings.
Although the introduction of the zero-fee policy initially garnered attention from investors and led to a brief increase in Bithumb’s market share, it eventually reverted to its pre-policy level.
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