#crypto #DeFi #Binance #Tokocrypto #SEBC #Gopax
Cryptocurrency giant Binance has announced its intention to buy a 41.2% stake in Korean cryptocurrency exchange Gopax. Gopax is one of the largest crypto exchanges in South Korea. Throughout 2022, Gopax managed to both expand its business and suffer significant losses due to the collapse of FTX.
Binance had intended to close the deal back at the end of last year, but is still in the process: due diligence has already been completed, as has due diligence, and the deal procedures have begun.
“Regardless of what 2023 brings, we are ready,” said Changpeng Zhao, CEO of Binance.
The 41.2% stake is owned by cryptocurrency platform Gopax CEO and its largest investor Lee Jun-Heng, and it is the one that Binance wants to buy out. This Binance deal is designed to strengthen the exchange in South Korea’s crypto market. In 2020, Binance was forced to close its subsidiary in the country due to controversy with the local regulator.
There were attempts by the exchange to buy FTX as well, but after the management canceled the deal, saying that a more thorough due diligence was needed.
The leader in the South Korean market is Upbit, with Gopax having a small share of just 0.1%, although it is one of the five largest crypto exchanges in South Korea.
The deal could see a dramatic change as Binance enters the South Korean markets.
Following the collapse of FTX, crypto-exchange Binance started actively investing in some companies and helping assets affected by the crisis. In November last year, the company allocated $1 billion for this purpose. Companies like Huobi Global and TRON are also taking part in the initiative.
More recently, Binance bought Japanese cryptocurrency exchange Sakura Exchange Bitcoin (SEBC).
In November, the exchange also invested in hardware wallet maker NGRAVE to develop a personal storage service for crypto assets.
At the end of December 2022, Binance acquired Indonesian exchange Tokocrypto, laying off more than half of its staff and implementing other measures to streamline the exchange’s operations.
DeFi security startup Goplus security is also receiving investment from Binance. The company is building threat protection, making Web 3 more secure. The company plans to open a marketplace with security services for DeFi. GoPlus security creates risk-detecting solutions for NFT, tokens, smart contracts and app security. The company ranks among the top data providers, handling more than 2 million requests every day.
Bottom line
After the collapse of FTX, investor confidence in cryptocurrency projects dropped and the Binance exchange engaged in a “massive construction project” to rebuild the crypto industry. First of all, projects aimed at securing crypto investing – security services, cold wallets, etc. – are supported. Crypto-exchanges, especially those with financial difficulties, are not left without support. Binance supports only official projects, not investing in suspicious companies and startups.
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