Coinone Declares Zero Trading Fees: Will It Break the Upbit-Bithumb Duopoly?
Crypto exchange Coinone has declared zero trading fees, entering a fierce competition to reclaim market share. Following Korbit, all eyes are on whether this aggressive move will shake up the domestic crypto market landscape.
Key Summary: On August 26, Coinone implemented a 'zero' trading fee policy for all cryptocurrencies. Following Korbit's recent zero-fee declaration, the market share competition in the domestic crypto market—currently dominated by Upbit and Bithumb with over 97% share—has entered a new phase.
Background and Market Impact of Coinone's Zero-Fee Policy
Coinone, the third-largest crypto exchange in South Korea, has played its trump card by completely eliminating trading fees. The exchange is offering a zero-fee voucher valid for 30 days that can be reissued unlimited times, essentially making it a permanent free service. This drastic measure comes just two days after Korbit (DigitalX) launched its own zero-fee campaign on the 24th.
Currently, the domestic crypto market is a duopoly, with Upbit holding a 68.11% market share and Bithumb taking 28.95% (based on August averages). In contrast, Coinone and Korbit hover at 2.39% and 0.52%, respectively. The decision by Coinone and Korbit to risk a 'bleeding competition' by giving up their core revenue source is interpreted as a desperate survival strategy to break the entrenched oligopoly and attract new customers.
Experts predict a distinct short-term increase in the market share of these mid-tier exchanges. Historically, whenever exchanges held zero-fee events, they saw a rapid surge in traffic and trading volume. However, given that investors prefer abundant liquidity and a diverse lineup of altcoins, it remains uncertain whether this will lead to a long-term shift in the market landscape.
Frequently Asked Questions (FAQ)
Q. How can I get Coinone's zero-fee benefit?
You can download and apply a 'zero trading fee voucher' valid for 30 days from the Coinone app or website. Even when it expires, it can be reissued infinitely without limits, allowing you to trade for free essentially all the time.
Q. Will existing Upbit and Bithumb investors migrate?
The zero-fee benefit is highly attractive to short-term traders and institutional or 'whale' investors with large trading volumes, so a short-term movement of funds is expected. However, for ultimate retention, it must be supported by secured order book liquidity and a stable server environment.
Q. What is the impact on the overall crypto market?
Intensifying competition among exchanges ultimately creates a favorable environment for investors. The pressure to lower fees could spread across the industry, and exchanges are likely to focus on developing differentiated value-added services such as staking and investment information provision, rather than relying solely on trading fees.