South Korea’s largest currency exchange, Bithumb, said that in 2017 the company’s revenues amounted to $ 6 billion, which is 171 times more than in 2016.
During the meeting of the board of directors, representatives of Bithumb reported on their earnings for 2017. Back in March, it was reported that the net profit of the company was $ 400 million. According to Bithumb, the bulk of income was obtained from crypto-currency savings, primarily due to the December jump in prices for crypto-currencies.
In December 2017, Bithumb had only $ 6 billion in crypto-currencies, in particular, $ 1 billion in BTC and $ 1.6 in XRP. However, these funds were in the investors in circulation, the stock exchange itself owned a much smaller volume of cryptocurrency:
$ 55 million in Bitcoin;
$ 60 million in Ethereum;
$ 10 million in Dash;
$ 30 million in Litecoin;
$ 13 million in Ethereum Classic;
$ 100 million in Ripple;
$ 80 million in Bitcoin Cash;
$ 23 million in Qtum;
$ 10 million in EOS, Bitcoin Gold, Monero and Zcash.
These funds were received by the exchange from users as commissions. Unlike many other platforms, Bithumb did not translate savings into fiat currencies, leaving them instead in the crypto-currency assets used to make transactions for which fees were charged.
The problem of money conversion
In any case, the currency exchange will have to convert part of the funds received from the commissions to cover operating expenses. However, it should be understood that the sale of these assets, often reaching up to hundreds of millions in dollar terms, is unlikely to have a positive effect on the market and the exchange rate. Such a problem does not exist on the traditional stock market, and therefore the local stock exchanges and the South Korean blockchain association are looking for its solution in pursuing a more effective policy.