Abu Dhabi Approves M2 for Crypto Services

The trading volume of South Korean cryptocurrency exchange Bithumb exceeded that of its competitor Upbit as of 10:30 a.m. UTC on Wednesday, as reported by the local news outlet Etnews, which cited data from CoinMarketCap. This shift occurred for the first time in four years. According to CoinMarketCap, as of the specified time, Bithumb's 24-hour trading volume reached KRW 4.93 trillion (approximately $3.8 billion), surpassing Upbit, which recorded a volume of KRW 4.37 trillion. Until 2019, Bithumb was the leading exchange in Korea. However, it ceded its top position to Upbit, which gained a competitive edge through its collaboration with the internet-only bank, Kbank.Photo by Pierre Borthiry - Peiobty on UnsplashZero trading fees and new crypto listingsEarlier in the year, Bithumb initiated a strategic plan with the objective of boosting its trading volume in order to increase its market share in the domestic market to 25%. To achieve this goal, the exchange implemented several key initiatives. One of the significant steps taken was the elimination of trading fees, aimed at attracting more users and increasing transaction volumes. Additionally, Bithumb broadened its cryptocurrency offerings by listing prominent cryptocurrencies such as Tether (USDT) and WEMIX.Questioned sustainability of strategiesIn anticipation of crypto winter giving way to crypto spring, trading platforms are gearing up for more intense competition to increase their market shares. However, there are concerns about the sustainability of strategies like implementing zero trading fees. Critics argue that such policies, while they may temporarily shift market shares, are unlikely to be successful in the long term. This skepticism is largely due to the fact that cryptocurrency exchanges heavily rely on trading fees as a primary source of revenue.  An industry expert has pointed out that unless the cryptocurrency exchanges currently lagging behind develop innovative, paradigm-shifting strategies capable of significantly impacting the market landscape, there's a high likelihood that the ranking order will revert to the previously established, entrenched market order.  In fact, at the time of this publication, Upbit upended Bithumb in 24-hour trading volume, recording KRW 4.4 trillion compared to Bithumb's KRW 3.2 trillion. This data underscores Upbit's strong position in the market, illustrating its continued dominance.

South Korea’s largest cryptocurrency exchange Upbit has opened a special event in celebration of its staking service surpassing a total value of KRW 1.5 trillion ($1.2 billion), where users can participate in a staking quiz to receive 0.002 ETH (approximately $4.60) each. Staking refers to the process of entrusting crypto assets to be utilized for a blockchain’s operations and receiving rewards in return.Photo by Nenad Novaković on UnsplashEvent detailsParticipants in the quiz event will have 30 minutes to complete five quizzes related to Upbit’s staking service. The total reward pool is 210 ETH, which will be allocated to 100,000 participants on a first-come, first-served basis the day after answers are submitted. After completing the quiz mission, ten users who also stake their Ethereum assets will get the opportunity to be selected to receive 1 ETH each. "We organized the event to make more users aware of staking on Upbit and to express our gratitude,” Dunamu, the operator of Upbit, said. Upbit’s growing staking platformUpbit’s staking service was officially launched in January last year. Currently, there are five cryptocurrencies that can be staked on Upbit – Ethereum, Cosmos, Cardano, Solana and Polygon. In particular, the exchange does not manage user assets or entrust them to external parties but stakes them through self-operated validators. All staked assets are stored in a cold wallet. 

Singapore-based cryptocurrency trading platform BingX has secured a sponsorship deal as the new sleeve sponsor for Premier League football club Chelsea.Photo by Chaos Soccer Gear on UnsplashJanuary 9 debutThe arrangement, spanning the next six months, is expected to debut during Chelsea’s Carabao Cup semi-final first-leg match against Middlesbrough on Jan. 9. As part of this sponsorship, BingX will prominently feature on the front of Chelsea’s training kits for the upcoming 2024/25 season. Meanwhile, the current shirt sponsor, Infinite Athlete, will transition to a training sleeve sponsorship starting next season. While details about the fate of Chelsea’s training kit deal with Trivago, an online hotel booking site, remain uncertain, the club is navigating sponsorship changes in the wake of owner Roman Abramovich’s prior ownership and UK government sanctions. Corporate rebrandEstablished in 2018, BingX operates as a cryptocurrency exchange headquartered in Singapore, catering to a user base of over 10 million in Southeast Asia and North America. In November, the company announced that it was rebranding the business. Part of that process was understood to involve an overhaul of BingX’s visual identity, with the introduction of a streamlined logo. Sponsorship within the English Premier League is a high profile marketing move that will undoubtedly bring more visibility to that brand. Crypto marketing spend reboundThe marketing spend of crypto firms relative to high profile sponsorship deals has recovered significantly in recent months. Such sponsorship deals peaked at the top of the crypto market in 2021. That period saw profligate spending by many of the large crypto platforms. A standout example was provided by the $135 million sponsorship deal signed by fraudulently run crypto exchange FTX for the Miami Heat stadium naming rights in the United States. While that opulent sponsorship spending subsided during the bear market, it appears that there has been a modest resurgence as market conditions have improved. Seychelles-based crypto platform OKX has ongoing marketing relationships with the McLaren Formula One racing team and Manchester City Football Club. In March, U.S.-based crypto exchange Kraken announced a marketing partnership with the Williams Formula One racing team. Earlier this week it emerged that crypto gambling platform Stake.com had signed a sponsorship deal with the Sauber Formula One team. 18 of the 20 English Premier League clubs are now understood to have agreed sponsorship deals at one time or another with crypto companies. This demonstrates the growing trend of cryptocurrency platforms associating with high-profile sports partnerships, enhancing their visibility and influence in the market. Chelsea is actively seeking a front-of-shirt sponsorship deal, considering potential collaborations, including discussions with Saudi national carrier Riyadh Air. It’s understood that the BingX deal has been agreed for in excess of £10 million ($12.7 million) per season.