SNEAK PEAK
- Binance has Staked in the GOPAX Exchange using its $1B recovery fund.
- This move helps Binance get back into the South Korean crypto market.
- Binance announced that it would cease operations in South Korea in 2021.
According to a report by Bloomberg, the most prominent cryptocurrency exchange on the market, Binance, has recently acquired a majority stake in the South Korean cryptocurrency exchange Gopax, which has been experiencing financial difficulties.
This new move has allegedly enabled Binance to return to the cryptocurrency market in South Korea.
Bloomberg: Binance Holdings Ltd. has acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX. The funding of the purchase came from a Binance-led co-investment project called the Industry Recovery Initiative, to which Binance pledged $1 billion.
— Wu Blockchain (@WuBlockchain) February 3, 2023
The transaction is financed through a venture dubbed the Industry Recovery Plan, which is one billion dollars in size and is headed by Binance. Binance intends to invest resources in the exchange to allow clients to withdraw funds and pay interest on GoFi, which is Gopax’s most lucrative offering.
The behemoth exchange has also allegedly obtained pledges totaling $50 million from crypto-native investment organizations, such as Jump Crypto, Polygon Ventures, and Animoca Brands.
Notably, Gopax is one of the many cryptocurrency companies impacted by the FTX crisis, and the company has halted withdrawals from a certain number of products until November 2022.
Binance announced that it would cease operations in South Korea in 2021, citing poor volume and use. However, towards the tail end of the previous year, it increased its presence in Asia by acquiring Sakura Exchange Bitcoin in Japan.
In November last year, it was revealed that the wealth management product GOFi offered by Gopax was impacted by Genesis, which resulted in a delay in the repayment of debt and interest.
Genesis is a partner in a yield product provided by GOPAX, which froze client withdrawals in November. In addition to Gemini, Genesis is also a partner in this product.