Bithumb, the largest crypto-currency exchange in South Korea, has just announced that they will organize an Initial Coin Offering (ICO) for their own crypto – currency – Bithumb Coin.
Bithumb: Not a regular ICO
A report by News1, the ICO will be carried out in Switzerland, however, in some of the key points of a “normal” ICO differ.
First, there is no public sale is to take place, but the so-called whales of the crypto industry should be targeted as investors. Hereby Bithumb refers to institutional investors and large Investment companies.
The only way for private investors to participate in the ICO, would be to large groups and institutional investors to join the Fund or with other individual investors. This is similar to the Telegram, one of the largest and most secure Messaging platforms from Russia, your ICO.
Bithumb has revealed no Details as to the structure or the intended use of their Cryptocurrency, however, it is believed that the new currency can be used for the payment of fees on the platform. Users of the Bithumb Coin can be either on the public market, or their fees in order to pay.
Bithumb will be able to use the ICO funds to cover the operating costs, whether for security updates or regular maintenance.
In Bithumb it is not the first South Korean company that runs a ICO.
The cocoa Group, the largest Internet conglomerate in South Korea, KakaoTalk (Messaging), KakaoPay (payment system), cocoa floor (stock broker), cocoa taxi (ride-sharing) and KakaoStory (social media) operates, recently announced that it will conduct a ICO for his new Blockchain platform.
Similar to the ICO in the cocoa Group s will be held Bithumb’ICO due to the strict state requirements for ICOs outside of South Korea. Bithumbs ICO will be carried out in Switzerland, and the cocoa Group has indicated that it could shift your Blockchain-project in the European Nation, under a separate company, which will run as a subsidiary.
This shift will, however, have a negative impact on the Blockchain-industry in South Korea, as the Blockchain technology, the Bithumb Coin, and the cocoa Group is potentially worth billions of dollars.
According to the Korean Times, the South Korean government recognizes these potential losses and plans to simplify the rules and regulations for the ICO’s may be a bit.
“The tax authorities with the tax authority of the country, the Ministry of justice and other relevant government on a Plan talked about, which allows ICOs in Korea to allow, when certain conditions are met.”