By
Godfrey Benjamin
April 30th, 2024
Despite the challenges facing the crypto industry, Kostarev and Smerkis remain undeterred in their pursuit of establishing Blum as a dominant player in the market.
Gleb Kostarev and Vladimir Smerkis, former executives of Binance, one of the world’s biggest crypto exchanges, have announced the launch of their new venture the Blum exchange. Kostarev previously served as Binance’s regional head of Eastern Europe, Commonwealth of Independent States (CIS), Turkey, Australia, and New Zealand, while Smerkis was General Manager for the CIS region.
Vision of Blum Exchange
According to reports from Bloomberg, Blum is set to transform crypto trading by offering users the ability to trade directly from third-party crypto wallets across multiple blockchain networks. In a statement released on Monday, Kostarev and Smerkis outlined their vision for the platform, which is set to debut later this month.
One of the key features of the Blum exchange is its innovative approach to the token listing. Unlike traditional exchanges that require extensive vetting processes, Blum will streamline the listing process by enabling crypto projects to automatically list their tokens for trading. This will be facilitated by software that conducts basic checks on a project’s technology, liquidity, and existing user base, thereby reducing barriers to entry for promising projects.
Markedly, Blum’s potential has already attracted attention from industry insiders, with Binance’s venture capital arm selecting the platform to participate in an accelerator program. This strategic partnership highlights the promising movement of Blum and its potential to reshape the crypto trading ecosystem. However, both Binance and Binance Labs have remained tight-lipped about their involvement in Blum’s development
The report hinted that Kostarev and Smerkis, who are currently based in Dubai, are deliberating on the location for Blum’s global headquarters, with the United Arab Emirates emerging as a potential contender. Furthermore, the pair is actively engaged in discussions to secure funding from external investors, aiming to finalize the round by the end of this month.
However, Blum’s inception comes at a challenging time for Binance, with the exchange facing increased scrutiny and regulatory challenges. Last year, Binance and its then-CEO Changpeng Zhao found themselves embroiled in legal troubles, including charges of money laundering and sanction violations, resulting in a substantial settlement worth $4.3 billion with the US Department of Justice.
Despite the challenges facing the crypto industry, Kostarev and Smerkis remain undeterred in their pursuit of establishing Blum as a dominant player in the market. With plans to target customers across Asia and seek approval as a virtual asset service provider in Georgia, the duo is positioning Blum for global success.
A Growing Crypto Market Trend
It is worth mentioning that Kostarev and Smerkis are not the first former crypto exchange executives to venture into entrepreneurship. In April, Vishal Gupta, a senior director of product management at Coinbase Global Inc (NASDAQ: COIN), announced his departure from the company to pursue a new crypto project.
Similarly, former FTX US President, Brett Harrison set up a new company that offers order management and algo-development services for the Decentralized Finance (DeFi) market, shortly after the collapse of the platform.
As Blum prepares to enter the competitive market of crypto trading platforms, all eyes are on Kostarev and Smerkis to deliver on their ambitious vision.
