Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
The acquiring party of premier South Korean Bithumb has failed to live up to its obligations prompting fears that the acquisition worth over $330 Million has gone sour.
If the signals are anything to go by the acquisition of premier South Korean cryptocurrency exchange Bithumb may fail unless some sort of miracle occurs. The Singaporean based but South-Korean owned BK Global Consortium has allegedly failed to meet up to its commitments as per the deal which saw only a $100 million (a third of the total of 400 Billion South Korean Won or over $330 Million) paid.
BK Global Consortium’s Head Kim Byung-gu,n who spearheaded the deal, is said to have asked for an extension of the payment date after changing positions on the stake to be acquired. Instead of the original 51% which was worth the original amount to be paid, the BK Consortium sought to purchase up to 70% of the cryptocurrency exchange on one condition: that the payment date for the balance be shifted to the 30th of September while renegotiations for the new amount would have taken place concurrently.
South Korean Media sources indicate that the operations of the cryptocurrency exchange aren’t likely to be affected due to change of ownership. According to an anonymous inside source:
“Since Bithumb has been operating stably from the beginning, it will not affect Bithumb even if the acquisition contract is destroyed.”
This raises questions as to how exactly the highly successful medical group would have raised funds for the transaction which would have been a game-changer not only in South Korea and Southeast Asia as a whole which is looked at by many as “a cryptocurrency safe zone”.
Unfortunately, though, the crypto space didn’t grow as expected. The BK Consortium had originally wanted to raise funds from the cryptocurrency markets by issuing its cryptocurrency token which would have served as a basis for the acquisition. Because the cryptocurrency markets haven’t been as Bullish as expected has made these kinds of transactions to be quite difficult.
Of course, there is bound to be some fall out from these kinds of transactions as it was expected to be one of the biggest cryptocurrency events in pro-cryptocurrency Sout Korea this year.
A Matter of Honor
As for the $100 million already raised, it will be more of a case of who failed to complete the transaction rather than of who is owing who money for the purchase. These kinds of transactions once they go awry usually have the purchaser being at the receiving end of criticism rather than the receiver due to the loss made from intense speculation rather than solid fundamental strategy, planning, and implementation.
South Korean media sources further report that a legal showdown is already in the works, which is yet another messy incident that will spook cryptocurrency investors globally. Media reports also show that foreign-based investors (both American and Chinese) have been shadowing the deal in the corners waiting for the perfect opportunity to invest should the BK Group fail to honor its obligations.
It appears that their time has come apparently.