How did Coinone reach their success and came on top of the crypto market?
South Koreans have been known to be very passionate about cryptocurrencies. Surprisingly, the nation 50 million is also home to around 2 million crypto investors, which means 4 percent of South Koreans trade in digital coins.
Naturally, this crypto fever also helped countless South Korea-based cryptocurrency companies achieve success. One of these successful businesses is crypto exchange Coinone, a business operation that originally employed only 20 people to the over a hundred employees it currently employs.
The same frenetic business activity also helped Coinone grew its user base and revenue. The platform now serves 643,000 and, as of December 2017, has managed to post 23.4 billion won in monthly revenues. With the surge in volume, the exchange is also considered one of the top three cryptocurrency exchanges in South Korea.
While competition within the new industry is intense, Coinone managed to remain on top of the game by offering something that its competitors did not. For instance, the exchanges issued statements on the technological aspects of the different digital coins in its roster.
The exchange is a bit picky when it comes to what cryptocurrency it included in its offerings and had set a standard considered high among its peers. In fact, Coinone does not list ICON, a coin listed by an affiliate of Dayli Financial Group, which is also Coinone’s parent firm.
The cryptocurrency boom in mid-2017 also started a feverish buying spree among South Korean investors. The frenetic activity eventually pushed South Korean crypto prices to 30 and even 40 percent higher than global rates.
While authorities were still trying to put regulations in place due to fears of a bubble, Coinone already implemented some measures on its own. For instance, the exchange imposed some security and identity verification requirements.
One of the main fears hounding the crypto industry is that governments might implement drastic actions such as banning crypto trading. However, Coinone remains confident that it won’t go to such extent, at least not in South Korea.
“It’s inevitable for the government to be concerned with cryptocurrency,” Coinone CEO Cha Myunghun explained. “But extreme measures such as the shutdown of exchanges would be going too far against the global trends.”
Like his peers in the industry, Cha understands why some governments might have reacted harshly initially. It’s all because regulators are not that well-versed about the crypto industry, a problem that can only be remedied by slowly educating these officials.
“Last year was a good year for us, with the investment boom,” Cha revealed. “But we need to show the value of blockchain technology, and I want Coinone to keep progressing over the next 10 years.”
In addition, some self-imposed rules might be helpful in taming the market’s volatility. These include basic KYC or identity verification as well as limiting the number of accounts a client can open.
In fact, Coinone, along with 22 other exchanges that are members of the Korean Blockchain Association, has agreed to self-regulation. The move came after the Korean Fair Trade Commission suggested that revise their consumer contracts to “contain a wide range of disclaimers, restrictions on unauthorized deposits and withdrawals, restrictions on the arbitrary use of services, and corrective clauses on identity and password management.”
The exchange is also strengthening the security of its services. For instance, it is now adding biometrics as a security feature of its app. The Coinone app now supports both Face ID and Touch ID for both iOS and Android versions to improve security and user experience.
All of these steps suggest that Coinone is set to reach its goals of increasing its business and becoming a diverse global fintech company. Aside from operating a crypto exchange, Cha revealed that the company wants to go into the remittance business, investment consulting, insurance, and other services.