Feb 04, 2023
Binance Re-Enters South Korea with Acquisition of Gopax
Cryptocurrency exchange Binance is making its return to South Korea with a new acquisition of the local crypto trading platform Gopax. The funding for the transaction was provided by Binance’s Industry Recovery Initiative, a finance-initiated investment project to which Binance pledged $1 billion.
Binance CEO Changpeng Zhao said that the move was made to protect not only crypto users, but also the crypto industry. “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, reported that Binance has acquired a “meaningful” equity position at Gopax, without disclosing the terms of the deal. Previous reports suggested that Binance purchased a 41% stake from Gopax’s largest shareholder, Lee Jun-hang.
The acquisition follows Gopax halting withdrawals from certain products in November 2022 due to the collapse of the FTX exchange. Gopax suspended withdrawal of principal and interest payments in its decentralized finance (DeFi) service GoFi, due to issues experienced by now-bankrupt crypto lending firm Genesis Global Capital. Prior to bankruptcy, Genesis was reportedly Gopax’s second largest shareholder and a key business partner, providing its GoFi product.
With the acquisition, Binance plans to spend the new capital into the Gopax exchange for customer withdrawals and interest payments for GoFi. The initiative also aims to promote crypto education and close collaboration with the South Korean regulators and virtual asset stakeholders.
“The fundamental thrust of this deal was to support customers and make sure that any customers who want to withdraw their assets have the ability to do so,” Ling stated.
The acquisition of Gopax by Binance is a major development in the web3 space and a sign of the increasing interest in the NFT market. With the acquisition, Binance is now well-positioned to offer a range of services to both crypto traders and NFT creators.
Binance’s acquisition of Gopax could open the door for more NFT promotion and marketing opportunities. The exchange could leverage Gopax’s existing platform and customer base to launch NFT marketing campaigns and promotions. Binance could also use its platform to provide access to NFTs to a broader audience, allowing users to buy, sell, and trade NFTs.
Moreover, Binance could potentially partner with NFT marketing agencies to provide a range of services such as Twitter NFT marketing, NFT promotion, and NFT marketing campaigns. This would enable NFT creators to reach a wider audience and increase the visibility of their work.
In addition, Binance could also become a web3 agency, providing a range of services such as building decentralized applications, developing smart contracts, and offering blockchain-based solutions. This could further open up the NFT market and make it easier for creators to sell their NFTs.
Overall, Binance’s acquisition of Gopax is a major development in the web3 space and could open up a range of opportunities for both crypto traders and NFT creators. It remains to be seen how the exchange will leverage the acquisition to further promote the NFT market and provide access to a wider audience.
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