 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s cryptocurrency exchange Bithumb is facing growing criticism from investors after launching an aggressive promotional campaign aimed at narrowing the gap with industry leader Upbit. Critics argue that the campaign overstated its benefits, as the event ended prematurely and key conditions were altered midway.
According to the cryptocurrency industry on December 30, Bithumb launched one of its 12th anniversary promotional events on November 12, offering annualized returns of 10% for users who transferred and sold certain cryptocurrencies—including Neo—through Bithumb wallets. The rewards were calculated on a daily basis and paid for up to seven days.
Based on Bithumb’s calculation formula, users selling 10 million won (approximately USD 7,500) worth of cryptocurrency were eligible to receive 19,178 won per week (10 million won × 10% × 7/365). The company promoted the event by stating that users could receive up to 10 million won per cryptocurrency and a maximum of 300 million won per person.
However, the event did not specify an end date, only noting that it could be terminated early.
On December 26, Bithumb announced that the promotion would end on January 2, meaning the event would last only about three weeks, considering the first payout was made on December 19. As a result, the 10% annualized return would be paid a maximum of three times.
Investors have voiced concerns that the shortened benefit period significantly reduces the appeal of the promotion and may even result in losses. Transferring digital assets from other exchanges to Bithumb involves transaction fees, and participation requires selling assets within a limited timeframe. This raises the risk of price declines caused by concentrated sell orders, potentially leading to principal losses.
Critics argue that the promotional campaign was overstated and that changes made during the event undermined investor trust, intensifying scrutiny over marketing practices in South Korea’s cryptocurrency exchange industry.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
