Korea Investment vs Mirae Asset Proxy Battle, Coinone and Kobit Compete with '0 Won' Fees

Kobit has waived all fees for a year... Coinone also responds with '0%' two days later
Upbit and Bithumb hold a combined market share of 97%... Competition for survival among mid-tier exchanges intensifies
Collaboration with financial firms and entry into the institutional market are key to long-term market restructuring.

[Block Media Reporter Oh Soo-hwan] Coinone and Kobit, which have attracted investments from large financial firms such as Korea Investment & Securities and Mirae Asset Group, are expanding their market share by promoting 'zero fees'. As Upbit and Bithumb monopolize 97% of the market, the competition for user acquisition has become fiercer, and the expansion of new businesses through partnerships with financial firms is expected to be a key variable for long-term competitiveness.

In particular, Korea Investment & Securities and Mirae Asset are already competing for market share in the traditional securities industry, so a fierce ranking competition is also anticipated in the digital asset market.

According to CoinGecko, a digital asset market tracking platform, the average trading volume market share of domestic won exchanges this month was recorded at 68.11% for Upbit and 28.95% for Bithumb. The combined market share of the two exchanges reached 97.06%.

In contrast, Coinone holds 2.39%, Kobit 0.52%, and Gopax only 0.03%. This background has led mid-tier exchanges to engage in a bloodbath competition for user acquisition, even at the cost of their core revenue source, trading fees.

Kobit's Free Fees Prompt Coinone to Respond... Competition for '0 Won' Fees Intensifies

Digital X, the operator of Kobit, decided to waive all trading fees for all won market items for one year starting from the 24th. This applies to all users without any separate application or trading volume conditions. There are speculations that Mirae Asset Group, which acquired Kobit, is beginning to expand its foothold in the digital asset market.

Coinone also switched its trading fee rate to 0% for all items from that day until further notice. Users can receive a voucher through the web or application, which waives fees for 30 days and can be reissued without limit.

Previously, Coinone waived trading fees for transactions using its personal open application programming interface (Open API) starting from the 21st. However, given that trading fees account for the majority of the exchange's revenue, concerns about profitability deterioration due to the long-term implementation of the free policy have also been raised.

A digital asset exchange official stated, "If users attracted during the free period do not remain after the event ends, the increase in trading volume may only be a temporary illusion," adding that "reducing the bid-ask spread and securing actual liquidity will determine the success or failure of the policy."

Coinone Expands Financial Connections After Investments from Korea Investment and OKX

In May, Coinone secured investments of approximately 80 billion won from Korea Investment & Securities and OKX Ventures, the investment subsidiary of the overseas digital asset exchange OKX. The two companies each acquired about 20% of Coinone's shares, becoming joint third-largest shareholders.

Last month, Coinone added a 'Stock Investment' menu that connects to Korea Investment & Securities' web trading system (WTS) within the Coinone app. Although this does not allow direct trading of stocks within the app, it marks the first collaboration that links digital asset users to traditional securities services.

Coinone is also expanding its territory in the stablecoin market. According to data submitted by the Financial Supervisory Service to the National Assembly, Coinone's average daily trading volume of stablecoins in June was recorded at 84.58 billion won, achieving a market share of 34.8%, surpassing Bithumb (31.1%) and Upbit (30.1%) to rank first among domestic exchanges.

However, resolving accumulated losses remains a challenge. Coinone's revenue last year increased by about 3% compared to the previous year to 45.5 billion won, but it recorded an operating loss of 6.3 billion won, continuing a four-year streak of operating losses since 2022.

Kobit, Acquired by Mirae Asset, Prepares for Additional 50 Billion Won Investment

Kobit was incorporated into the Mirae Asset Group as Mirae Asset Consulting acquired 97.15% of its shares for approximately 141.4 billion won. In addition to the acquisition price, Mirae Asset Consulting provided an additional investment of 50 billion won to supply operating funds and resources for new businesses.

In line with this, the operating company of Kobit changed its name from 'Kobit Co., Ltd.' to 'Digital X Co., Ltd.' on the 11th. Digital X is reviewing tokenization of real-world assets (RWA), token securities (STO), stablecoins, custody, and services for institutions in collaboration with Mirae Asset. The zero-fee competition between Kobit and Coinone is showing signs of escalating into a proxy battle between Mirae Asset and Korea Securities, which are rivals in the securities industry.

Gopax with 0.03% Market Share Focuses on Management Normalization Rather than Fee Competition

Gopax, which holds a market share of only 0.03%, is focusing on strengthening its fundamentals instead of engaging in a fee war. In May, Gopax held customer acquisition events by offering a 0.03% incentive for maker orders in the BTC won market and lowering taker fees to 0.05%, while also pushing for an increase in the usage fee for won deposits.

However, the industry points to the resolution of the 'Gopai' unpaid principal and interest issue and the renewal of its digital asset service provider (VASP) license as challenges for management normalization. Last month, Gopax appointed Kim Na-young, former head of financial business development at Amazon Web Services (AWS) Korea, as the new CEO, focusing on restoring user trust and stabilizing governance.

Leading Upbit and Bithumb Respond with Platform Integration and Targeted Free Fees

Leading exchanges are also defending their market share through platform integration and fee benefits targeting specific markets.

Upbit has waived all trading fees for major stablecoins such as Tether (USDT), USD Coin (USDC), and USD Digital (USDE) since the 26th of last month. This is a measure to expand the relatively insufficient liquidity of stablecoins and retain related users. Additionally, its operator Dunamu is pursuing a corporate merger with Naver Financial to seek synergies with Naver's search, commerce, AI infrastructure, and Naver Pay payment network.

Bithumb has also applied a zero-fee policy to all items in the BTC market and Open API trading. Open API trading, used for automated trading, is primarily utilized by high-value and professional investors. Furthermore, it is currently enhancing internal controls and transitioning to Korean International Financial Reporting Standards (K-IFRS) with the goal of an initial public offering (IPO) in 2028. It plans to apply for preliminary examination for listing next year.

Preparing for Corporate and Institutional Market Opening Beyond Fee Competition

The industry believes that the opening of the corporate and institutional market will be a variable in future market competition. For exchanges with large financial capital to realize investment effects, institutional trading of digital assets and the establishment of a 'Digital Asset Basic Law' must first be prepared as a regulatory foundation.

A digital asset industry official stated, "Coinone has the environment to utilize Korea Investment & Securities' financial network and OKX's global liquidity, while Kobit can leverage Mirae Asset's institutional client base and asset management capabilities," adding that "Upbit is aiming for platform integration with Naver, while Bithumb is looking to expand capital through an IPO, making each company's direction clear."

He continued, "In choosing an exchange, factors such as order book depth, deposit and withdrawal stability, and brand trust will also play a role, making it difficult for the current duopoly to be shaken easily," but added, "The user lock-in effect during the fee-free period and the completeness of joint projects with financial firms after regulatory adjustments will be key turning points for long-term market restructuring."

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