Upbit Intensifies Crypto Listings Amid Rivalry with Bithumb

Upbit Matches Six Months’ Listings in Just Three Months

South Korea's largest digital asset exchange, Upbit, led by CEO Oh Kyung-seok, has made a significant strategic shift in its operations by accelerating its listing pace. During the first three months of the second half of 2023, Upbit listed nearly as many new assets as it did over the entire first half of the year—a move analyzed as a response to its revenue-dependent business model and to counter Bithumb’s aggressive expansion plans.

Data from BlockMedia reported that as of September 19, Upbit had listed 28 new assets on its Korean Won (KRW) market since July. This is a near match to the 31 assets added during the first half of the year. Breaking it down by month, nine assets were listed in July, six in August, and a remarkable 14 in September. Experts view this sudden acceleration as a strategic deviation from its traditionally conservative listing approach, aimed at boosting trading activity and reinforcing its dominant market position.

An insider from the digital asset industry commented, “Although Upbit’s internal strategy remains confidential, the rapid pace of asset listings under CEO Oh Kyung-seok represents a clear departure from prior policies. The inclusion of lesser-known domestic tokens alongside global projects signals a broad-reaching strategy to attract new investor demographics.”

CEO Oh Kyung-seok's Vision for Upbit

When CEO Oh Kyung-seok assumed leadership in June, he outlined a bold vision for Upbit, underscoring its achievements in surpassing the largest U.S. exchange in terms of trading volume last year. He emphasized his ambition to position Upbit as a globally competitive, future-oriented enterprise.

One of the standout announcements under his leadership was the development of Upbit’s proprietary blockchain mainnet, dubbed “Giwa.” This innovation is poised to become a cornerstone for Upbit’s financial infrastructure. Analysts predict that Giwa will enable the creation of native coins and tokens, further strengthening Upbit’s fee-based revenue structure by driving higher trading volumes.

A representative from a local KRW exchange highlighted the broader potential of Giwa, stating, “Upbit’s mainnet could introduce tokenization of traditional assets like stocks, real estate, and commodities using stablecoins. Enhanced trading volume as a result of this expansion could significantly bolster its fee-based profitability. That said, the ultimate impact depends on how effectively Giwa is deployed.”

This vision mirrors the successful strategy of Binance, which uses Binance Coin (BNB)—issued on its proprietary blockchain—for fee discounts and ecosystem benefits. By leveraging these advantages, Binance consistently secures daily trading volumes worth trillions of won.

Bithumb’s Aggressive Market Expansion

Upbit’s heightened pace of listings is viewed as a direct response to Bithumb’s aggressive market moves ahead of its planned IPO in 2024. Bithumb has expanded significantly, listing 409 trade-supported assets while deploying zero-fee trading policies and executing lifestyle-focused marketing partnerships. Collaborations with convenience stores, movie theaters, and credit card companies have heightened Bithumb’s visibility, with advertising expenses soaring beyond 130 billion KRW in the first half of the year.

These strategies have translated into meaningful gains for Bithumb. According to CoinGecko data, Upbit currently holds around 64% of the Korean KRW market share, while Bithumb accounts for 34%. This growth marks a notable comeback for Bithumb, whose daily trading volumes briefly surged to approximately 40% in September—double the 20% share it had earlier in the year.

In response, analysts interpret Upbit’s aggressive listing expansion as an effort to distance itself further from Bithumb and fortify stability in its fee-driven business model.

Investor Protection Challenges Arise

Despite its strategic ambition, Upbit’s rapid pace of listings has raised concerns about investor protection. By August 2023, Upbit had delisted 11 assets, significantly exceeding the three delistings reported in 2022. Industry observers note that this increased delisting activity correlates with the influx of newly listed assets and points to potential risks such as liquidity issues or project instability.

For example, QuizTalk, a token listed on Upbit’s USDT pairing market in May, saw its trading support terminated within two months. By August 25, it was fully delisted. Upbit cited multiple concerns, including inadequate disclosures, security vulnerabilities, and business viability problems. However, the brevity of this lifecycle sparked criticism regarding the integrity of Upbit’s listing review processes.

Industry experts caution that repeated short-term delistings could harm investor confidence. One insider stated, “If frequent delistings erode the credibility of listing announcements, investors may begin to distrust new tokens entirely. A strategy focused on event-driven, high-turnover listings may generate short-term trading activity but could ultimately destabilize the wider market.”

The Road Ahead for South Korea’s Crypto Market

As competition between Upbit and Bithumb intensifies, South Korea’s cryptocurrency ecosystem is closely watching how this rivalry shapes the market's future. Whether Upbit’s accelerated listing approach results in sustainable growth or unintended disruptions remains a pivotal question.

The battle for dominance in the Korean digital asset space underscores the importance of balancing innovation, investor trust, and competitive strategy in an ever-evolving financial landscape. Both exchanges are crafting distinct paths to capture market share, making their next moves critical for shaping the trajectory of South Korea’s blockchain and crypto industries.