Bitstamp Acquired By South Korean Group
October 30, 2018 1:20 pm
The largest cryptocurrency exchange has been acquired by a South Korean holding company. Notably, this company also owns the rival Korbit. This is the latest development among big players in the cryptocurrency trading world.
Bitstamp shared an official statement this past Monday stating that it has been acquired by NXMH. This company is based out of Belgium and has the track record of managing over €2 billion in financial assets.
Bitstamp was founded in 2011 and is the largest cryptocurrency trading platform in the European Union by sheer trading volume. It has 1 million active users on the platform. Bitstamp is based on of Luxembourg.
The NXC group has said that Bitstamp will operate independently of Korbit. The tie-up will enable both firms to “generate synergies in a number of areas, including technology, research, and development.”
The cryptocurrency exchanges were not prepared for the surging demands of the digital assets market last year. There has been a steep fall in the value of crypto this year and incidents of fraud, manipulation, and hacks have kept cryptocurrencies from becoming a mainstream financial tool.
While some exchanges slumped under these market conditions, others have been thriving. Earlier in 2018, Circle Internet Financial, a cryptocurrency startup acquired Poloniex, the US crypto exchange. Circle has the backing of Goldman Sachs.
Before the acquisition of Bitstamp took place, the shares were held by the CEO and co-founder Nejc Kodric, the second co-founder Damian Merlak and Pantera Capital Management hedge fund who invested $10 million into the exchange back in 2014.
After this deal, Mr. Kodric and Pantera will retain 10 and 6 percent shares respectively. The remaining company will be owned by NXMH.
Both companies have declined to disclose the terms of this deal. Both companies see cryptocurrencies adoption by the mainstream market “as a long-term process rather than a gimmick.”