MadeinFuture Series: Can Korea Become the Next Crypto-Friendly Haven for Exchanges?
New Economies Founders Alice Hlidkova and Lucas Cervigni travelled to Seoul, Korea, last week to attend the official launch of Perpetual Swap and other innovative products developed by the Malta-based cryptocurrency exchange Okex. Perpetual Swap is a peer-to-peer, virtual derivative with key benefits including no expiration dates and consolidated liquidity.
Since launched, OKEx’s futures trading has been widely embraced by institutional and professional traders and miners, making the company leaders in the crypto derivatives market.
From our US friends, there were concerns about the exchange being unregulated. Although Hlidkova cautioned the future of exchanges rests on their ability to attract larger traders incentivized by market makers for placing larger trades, she concluded that exchanges will rely more on support from a community of retail traders and investors. Cervigni added his perspective of exchanges providing, “user-friendly interface with AI support and AI support as a premium product.”
The success of exchanges is defined differently with every region and its set of legal and cultural rules. For example, Cumberland a major OTC Exchange based in Seoul, recognized that “both the government and local financial institutions have to acknowledge the efforts of Nasdaq, Fidelity, and some of the largest conglomerates in the global market working to strengthen the infrastructure around cryptocurrencies", as written in a recent news article published for Yahoo.
What was also mentioned, is the Cumberland CEO defined a clear opportunity in security tokens as major head funds and venture capital firms like Andressen Horowitz place huge bets on the market with its $28 million investment in Harbor.
In any case, the number of OTC and cryptocurrency exchanges exploded worldwide. Various sources report a range of 200 to 500 with a large concentration of them in Asia. CoinmarketCap alone listed 208. As the market for securities tokens becomes more saturated, exchanges like OKEx and Cumberland will benefit from the growing user base of institutional and retail traders. The difference in trading groups relies on some factors each could participate in, the costs per trade and the level of information and analysis each receives. Not to mention favorable transaction fees, innovative products like the perpetual swaps and AI enabled customer service.
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Written by Alice Hlidkova