[Asia Exclusive] "Cryptocurrency is Just the Beginning... Blockchain Will Expand Across All Fields"

Interview with Heo Baek-young, CEO of Bithumb
Cryptocurrency is also a blockchain content like shoes in a department store
R&D investment is an investment in people... the largest part of expenses is employee compensation
Confident that cryptocurrency listing reviews are stricter than anywhere else despite controversies

Heo Baek-young, CEO of Bithumb, is being interviewed by Asia Economy on the 12th. / Photo by Moon Ho-nam munonam@

"Domestic cryptocurrency exchange Bithumb is not only a place for cryptocurrencies but also a platform that distributes blockchain content."

Heo Baek-young, CEO of Bithumb, had a busier year than ever before last year. Bitcoin reached an all-time high of 82.7 million KRW, and new cryptocurrencies featuring functionalities such as non-fungible tokens (NFTs) emerged. The industry also took a step closer to institutional recognition. In November last year, Bithumb was the last among the four domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit) that received real-name accounts to have its virtual asset business operator registration approved.

CEO Heo predicted that this year would also be a year in which the cryptocurrency market takes another leap forward. He foresaw that blockchain would play a role across various fields as long as records can be made, including not only NFTs but also metaverse, securities, notarization, and contracts. Bithumb was also ready to promptly enter related businesses if new areas where blockchain can be utilized emerge.

-Last year, the cryptocurrency market was hotter than ever. What are your reflections?

▶2021 was a year for Bithumb to tie its shoelaces. The cryptocurrency market grew, and we spent a hectic time due to the virtual asset business operator registration under the amended Act on Reporting and Using Specified Financial Transaction Information. Thanks to the efforts of all Bithumb members, we achieved results.

However, there were also shortcomings. Many investors came to Bithumb, but the platform’s speed was disappointing. To resolve internal technical issues, we have been putting company-wide efforts since the first quarter of last year and are preparing a speed improvement project.

-What is your macro outlook on the cryptocurrency market?

▶The market is quiet these days, but cryptocurrencies are gaining attention overseas as a hedge against inflation losses. When people meet me, they ask about Bitcoin’s outlook or the price of specific cryptocurrencies, but exchanges are not places to predict prices. However, I expect cryptocurrencies to be increasingly recognized and their value to rise. Cryptocurrencies are already fulfilling their role simply by holding value. Liquidity has surged, and people have sought vessels to hold liquidity, with cryptocurrencies being selected as that vessel. Regardless of the logic of the process, they have gained trust and received tacit consent from the public that they can store value.

-Currently, you only provide cryptocurrency trading services. Are there other businesses you are preparing?

▶Bithumb considers itself a place that distributes blockchain content and assets rather than just cryptocurrency trading or distribution. Cryptocurrencies are just one of the blockchain contents, like shoes in a department store. Blockchain is inexpensive from a business perspective, so I believe it has high business potential and will inevitably grow. In the future, stocks, currencies, notarization, and contracts will all build systems within the blockchain ecosystem. Bithumb plans to trade all such contents, and cryptocurrencies can be seen as the prologue.

Looking at this year alone, Bithumb is also preparing businesses related to the metaverse and NFTs. Bithumb is already a technologically mature exchange capable of handling large amounts of traffic. Although no specific plans have been announced yet, we will gradually share them.

-Last year, Bithumb was significantly lagging behind Upbit.

▶I think this result came because Upbit comprehensively met customer demands. The point when Upbit started attracting more customers than Bithumb was when it partnered with K Bank and provided easier accessibility. Also, although monopoly issues arise, liquidity is important, so investors tend to go where more people gather. We missed opportunities in this regard, but we can only prepare better services to compensate and repay our customers.

-How much do you plan to invest in R&D going forward?

▶The largest expenditure for Bithumb is employee compensation. I consider investment in people as R&D investment. Last year, we wanted to hire as many developers as possible but had difficulty finding people. Fortunately, since the end of last year, we have been learning how to recruit, with 200 applicants over three months. We plan to hire about 100 more developers going forward.

-There are criticisms that Bithumb’s management rights issues are complicated.

▶It’s not complicated. There have been many external discussions about ownership, but management has never been complicated. Although major shareholders are mentioned, it should be seen as a relationship between ordinary shareholders and management. If performance is poor, the board will give harsh feedback, but I do not consider that interference in management.

-There are many claims that cryptocurrency exchange listing reviews lack transparency.

▶Bithumb prides itself on having the strictest cryptocurrency listing reviews. We check whether the cryptocurrency to be listed has no technical issues and whether the plans written in the whitepaper are being implemented business-wise. Those who create cryptocurrencies will realize how difficult it is to get listed on an exchange. The noise around Bithumb paradoxically arises because of our strictness. For example, scammers who promised Bithumb listing took listing fees and disappeared, causing dissatisfaction among those who paid.

After listing, we are most wary of cases where the issuing foundation releases large amounts of tokens into the market without notice. When contracting with foundations, Bithumb determines how much volume can be released into the market. If too many tokens come into Bithumb, we temporarily block them and protect investors by methods such as placing them in blockchain wallets without recording them in the database.

-Do you have any personal goals you want to achieve?

▶I don’t think I have personal goals. There is no individual during my tenure as CEO. Ultimately, I see responsibility toward employees, customers, shareholders, and humanity. Especially from humanity’s perspective, Bithumb, as a leading blockchain company, faces social criticism. This is because we innovate and bring the future closer. In the past, those who introduced new things were criticized. We bear all criticism and innovate, so I think it is a rewarding endeavor.

This content was produced with the assistance of AI translation services.