Simple Cryptocurrency Purchase Service Developed by Korea Spreading Overseas

A simple cryptocurrency purchase service first introduced in Korea is spreading overseas. The advantage of 'simple purchasing' is that users can invest in cryptocurrencies more easily because exchanges or communities have already verified their identities. In addition, this new service reduces fraud risk since exchanges and communities have already verified the cryptocurrencies that can be purchased through it. This seems to be the reason the new service has been garnering much attention from cryptocurrency investors in foreign countries.

According to the cryptocurrency industry, CoinBene, a virtual money exchange which ranks fifth in global trading volume (based on CoinMarketCap), has wrapped up the development of a platform for simple purchasing services. Beginning on Dec. 17, the global exchange will launch its simple purchasing service and Temco, a cryptocurrency project led by Korea, was selected as the first cryptocurrency that its users can purchase through the simple purchasing service. CoinBene, which has branch offices in 160 countries, will begin a pre-sale event for Temco on Dec. 17 and the main sale on Dec. 24. CoinBene users will be able to easily purchase Temco.

Simple purchasing is an initial coin offering (ICO) method, which was initiated by Korean cryptocurrency exchanges and the Korean cryptocurrency community. An exchange or a community verifies a cryptocurrency before making it available for purchasing by its users. In Korea, Tokenbank, Cobak and Bitsonic among others are offering simple purchasing services. Unlike an initial exchange offering (IEO) which implements token issuance and listing at the same time, simple purchasing is characterized by investor protection functions such as a lock-up that limits investors' sale for a certain period of time.

"A simple purchasing service began in Korea to address the problems that project managers and investors face in an ICO. When carrying out an ICO, project managers have to directly identify users, while investors often participate in an ICO without reliable information," said an official at a company that provides a simple purchase service. "Since an exchange or a community verifies cryptocurrencies and user identities first, simple purchasing services have many advantages for both investors and projects."

The first cryptocurrency selected by CoinBene for simple purchasing services is a project designed for distribution companies. It records distribution data in a blockchain and provides them with a data analysis tool to utilize these data efficiently. In particular, while most blockchain projects choose Ethereum and EOS as their platforms, Temco uses Bitcoin networks, differentiating itself from them. Temco attracted investment from Korea Investment Partners in the second half of this year, earning recognition for its growth potential.

CoinBene adopted a simple purchasing method for the first time among overseas exchanges. Industry analysts say that CoinBene’s endorsement of simple purchasing would pave the way for Korean projects to have ICOs for foreign investors.

As CoinBene has developed a platform dedicated to simple purchasing, a wide variety of simple purchasing projects are expected to come out in the future.

"The bulk of simple purchasing has been carried out by Korean users and projects," said an official in the cryptocurrency industry. "If a Korean project implements simple purchasing through CoinBene, it can attract overseas users more easily."