Bithumb Offers 13% Bitcoin Yield Amid Exchange Fee War

South Korea's second-largest cryptocurrency exchange Bithumb has launched an aggressive rewards program offering approximately 13% annualized Bitcoin returns on customer deposits. The 'Plus Club' rewards program is aimed at new subscribers and users with no trading history this year, and members will earn Bitcoin daily based on their average daily asset holdings.

The benefit is capped at 14,000 won (approximately $10) per day, 420,000 won (approximately $310) per month, and up to 5 million won (approximately $3,700) annually. To be eligible, users must have a monthly cumulative trading volume of at least 50 million won (approximately $37,000).

This move is seen as a response to the fee-free policies of DigitalX and Coinone, which have been waiving trading fees on their won-market listings. However, industry observers suggest that this competition may not be enough to break up the duopoly held by Upbit and Bithumb, with combined share of 92.77% of 24-hour trading volume.