Bitkub Online Co. has become Thailand’s latest venture to secure equity of over $1 billion. Siam Commercial Bank (SCB) acquired a majority stake by market value. It made Bitkub coin triple its value following the announcement of the deal.
The nation’s king is the biggest shareholder of Siam Commercial Bank Pcl. It will acquire 51% of the Bitkub stake for 17.85 billion baht, equivalent to $535 million. It values Thailand’s largest crypto exchange at around 35 billion baht.
Bitkub coin’s humble beginnings
Bitkub coin (KUB) is Thailand’s Bitkub Chain’s native utility coin. It’s equivalent to Ethereum (ETH) for the Ethereum blockchain and Binance coin (BNB) for the Binance smartchain. It started in 2018 under the license of the Thai Securities and Exchange Commission.
Thai traders generally make cryptocurrency transactions using foreign blockchains such as Ethereum and Binance. They pay a transaction fee using native tokens, including ETH and BNB. However, their costs are
The company behind KUB saw the stability of the cryptocurrency because they wanted to distribute coins to traders thoroughly. Also, they want to sustain market liquidity and let people buy Bitkub coins at a reasonable price.
People can use Bitkub coins for gas or transaction fee for blockchain generic transactions. It can also be utilized to transmit smart contracts on Bitkub Chain. However, they have high prices, soaring several times in the past few months.
Bitkub Coin almost increased to 200%
On Tuesday, November 2, Asian time, the Bitkub coin climbed to a record $2.8 from a low 98¢ earlier in the day. Siam Commercial bank’s share soared at nearly 3.5% to a six-week high.
The demand for cryptocurrencies and equity products swelled in Thailand. It’s because young investors look for better returns from their savings despite low-interest rates and economic retardation. The bank defied the caution from policymakers and regulators about crypto-asset risks.
“Bitkub has reached a milestone by becoming an important part of Thailand’s digital economic infrastructure. Bitkub is no longer just a startup and is now becoming a necessary part of the infrastructure critical for Thailand’s financial industry,” said Jirayut Srupsrisopa, Bitkub Capital Group Holdings Co. founder.
Siam Commercial bank’s chief executive officer, Arthid Nanthawithaya, said Bitkub’s investment would enable SCB Group to establish long-term new value. Additionally, the bank will be able to accommodate new consumer needs. Because of the Bitkub coin, they can compete in the coming three to five years.
In May, Thailand saw a transition at domestic licensed cryptocurrency exchanges ballooning to 217 billion from 18 billion baht in November last year. It fell since and amounted to around 100 billion baht per month in the August to October period.
Bitkub started with around 1.53 billion baht in the first nine months of this year from a 3.28 billion baht revenue. Its trading turnover baht during the January to September period almost reached 1.03 trillion. It presents 92% of the total turnover alongside all licensed cryptocurrency exchange operators in the country. Bitkub ranked 79th among over 300 exchanges worldwide, with a turnover of $282 million in just 24 hours.
KUB-SCB Group deal could affect small crypto operators
SCB Group’s more than 50% acquisition of Bitkub can impact small cryptocurrency operators because it might multiply the exchange’s market share. Analysts expect that the bank will appreciate 1 billion baht in Bitkub earnings by next year alone.
Thailand’s market of digital assets proliferated this year despite the pandemic. The joining of the two customer bases will enlarge their trading values and market size, according to Thai Fintech Association president Choladej Khemaratana.
Image Source: (Karolina Grabowska/pexels)
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