One of South Korea’s largest game companies has signed a memorandum of understanding to purchase Bithumb.
Bithumb is South Korea’s largest cryptocurrency exchange.
If the deal goes through, it will be the third cryptocurrency exchange under Nexon’s ownership.
Nexon, one of the largest gaming companies in South Korea and around the world, has announced that it will acquire the cryptocurrency exchange Bithumb for around 500 billion won, or $ 460 million.
South Korean agency Maekyung broke the news , saying Nexon and Bithumb had officially signed a Memorandum of Understanding (MOU) to start the process.
The deal will allow Nexon to acquire an approximate 65% stake in the Bithumb exchange . Bithumb is currently the largest cryptocurrency exchange in South Korea, so the acquisition may be a natural fit for both companies.
This isn’t Nexon’s first foray into cryptocurrency
If the deal goes through, this will be Nexon’s third acquisition of a major cryptocurrency exchange. The gaming giant is quickly becoming one of the most dominant players in the crypto exchange space.
Nexon also has other popular exchanges such as Bitstamp and Korbit. Bithumb has reportedly been seeking a buyer for the property for some time . Another company almost bought it in 2018, but they may have finally found a perfect buyer at Nexon.
Agreement is not guaranteed
Although a memorandum of understanding has already been signed, it does not guarantee that the agreement will be completed.
Uncertainties persist regarding management practices at Bithumb. The Seoul Metropolitan Police Agency in South Korea investigated the exchange and its chairman Lee Jung Hoon in September.
Authorities accused the company of selling its cryptocurrency, BXA, without listing it. Bithumb reportedly sold 30 billion won in token, nearly $ 30 million, causing heavy losses for investors after failing to list the token.
Institutional money is pouring in
The investment reveals the organization’s confidence in the longevity of the cryptocurrency trading market .
Several large international organizations have invested in or integrated crypto-trading into their platforms. One such example is PayPal, which recently launched an internal trading platform that allows users to trade major cryptocurrencies like bitcoin and ether.
PayPal’s platform has just taken a new step with a daily trading volume of $ 100 million. This figure is particularly high for a company that has just launched trading capabilities.
With all-time highs for Bitcoin , while Ethereum is on the cusp of its own record, capital will likely continue to flow.