Crypto Exchanges Korbit, Coinone Abolish Trading Fees Amid Market Share Battle
Cryptocurrency exchanges Coinone and Korbit have joined forces to eliminate trading fees in an effort to challenge the dominance of Upbit and Bithumb. This move comes as smaller exchanges backed by major financial players step up efforts to win customers despite a slump in crypto trading volumes.
Korbit was the first to make this aggressive move, announcing on Monday that it would waive trading fees on all cryptocurrencies in its won market for a full year through August 24 next year. Coinone followed suit on Wednesday, eliminating trading fees for all cryptocurrency trading starting at 11 a.m. The exchange offers a 30-day zero-fee voucher that users can renew an unlimited number of times.
The move by Korbit and Coinone is seen as a bold attempt to challenge the market share of Upbit and Bithumb, which together account for around 97% of trading volume on Korea's won-based exchanges. According to data from cryptocurrency data provider CoinGecko, Korbit held a 0.52% share, while Coinone accounted for 2.39%. The two smaller exchanges have chosen to sacrifice trading fees, a core source of revenue, in an effort to gain greater market share.
The shift in the shareholder structures of Korbit and Coinone may be behind this aggressive move. Mirae Asset Consulting gained management control of Korbit after acquiring more than a 97% stake in the trading platform last month. It has also committed to injecting an additional 50 billion won ($36 million) into the exchange. Korea Investment & Securities acquired a 20% stake in Coinone in May and entered into a strategic partnership with the exchange.