South Korean cryptocurrency exchange Bithumb has announced that it is launching its own cryptocurrency. The exchange claims that it handles 15% of the global Bitcoin (BTC) trading volume. The new token, Bithumb Coin (BT), will fuel transactions on Bithumb Chain while adding incentives and value to the exchange’s blockchain protocol.
Bithumb Chain is currently being developed for the IT, security, cryptography and financial verticals and currently offers an Exchange-as-a-Service. Bithumb Coin will have a total supply of 300 million tokens with 30% going towards a user incentive pool. Another 30% will be allocated for trading incentives with a point system that will be disclosed at a later time.
The remaining 40% is not clearly delineated in the announcement, but the exchange does state that “25% of BT’s token distribution is based on chain development and sustainability.” Bithumb plans to use 50% of its revenue for buybacks until 150 million tokens remain, a similar strategy to that employed by other exchanges like Binance. Adding further utility, users will be able to pay fees on Bithumb Global using BT and lease their tokens to earn rewards.
BT holders will also be able to participate in governance decisions and stake a certain number of tokens to become a Bithumb community node and participate in “Bithumb Family” listing nominations. The latest development comes a year after Bithumb sold a 38% ownership stake to a blockchain consortium based in Singapore for 400 billion won ($350 million). This sale came in the wake of a hacking event that saw $30 million worth of cryptocurrencies stolen from the platform.