Feb 04, 2023
Binance Re-enters South Korea with Acquisition of Gopax
Cryptocurrency exchange Binance is making its return to South Korea, having recently acquired a majority stake in the Digital Currency Group-backed Gopax. The funding for the deal was provided by Binance’s Industry Recovery Initiative, which the company pledged $1 billion to.
Changpeng Zhao, Binance’s CEO, noted that the acquisition is part of the company’s mission to protect not just crypto users, but the industry as a whole. “The Industry Recovery Initiative was created to support promising companies that were negatively impacted by the events of last year. We hope that taking this step with GOPAX will further rebuild the Korean crypto and blockchain industry,” he said.
Yibo Ling, Binance’s chief business officer, revealed that Binance has acquired a “meaningful” equity position at Gopax, though the exact terms of the deal were not disclosed. Previous reports suggested that Binance purchased a 41% stake from Gopax’s largest shareholder, Lee Jun-hang.
The acquisition comes shortly after Gopax halted withdrawals from certain products in November 2022, due to the collapse of the FTX exchange. Gopax had to suspend withdrawal of principal and interest payments in its decentralized finance (DeFi) service GoFi as a result of issues experienced by the now-bankrupt crypto lending firm Genesis Global Capital.
Binance has stated that the new capital will be put towards customer withdrawals and interest payments for GoFi, as well as promoting crypto education and close collaboration with South Korean regulators and virtual asset stakeholders. Yibo Ling noted that the primary purpose of the deal was to “support customers and make sure that any customers who want to withdraw their assets have the ability to do so.”
Binance’s re-entry into the South Korean market is great news for the web3 space. With this acquisition, Binance will be able to provide NFT marketing services and NFT promotion services to its users. This will allow users to better promote their NFTs and increase their chances of selling them. Binance’s NFT marketing agency will also be able to provide guidance on how to best utilize Twitter for NFT marketing.
Binance’s return to South Korea will also be a boon for the NFT market. Binance’s web3 agency will be able to provide advice on how to effectively market NFTs and get them into the hands of potential buyers. This will help NFT sellers to increase their chances of success.
Overall, Binance’s re-entry into South Korea is a great step forward for the web3 space. It will bring more opportunities for NFT sellers and buyers alike, as well as providing a platform for crypto education and collaboration with regulators.
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