Nexon’s Lee Jung-hun Denies Rumors of Acquiring Crypto Exchange Bitstamp for $350M

Updated on Apr 27, 2018 at 4:29 pm UTC by Sofiko Abeslamidze · 3 min read
Photo: Chris Dlugosz / Flickr
Photo: Chris Dlugosz / Flickr

The Korean giant of video gaming industry, Nexon Korea, has refuted the rumors that it is going to acquire the oldest crypto exchange Bistamp denying any intention to link cryptocurrencies to their business.

The cryptocurrency exchange business is widely considered to be in a process of transition as it has seen many rapid changes recently. The Far East perfectly depicts a nascent uncertainty of crypto market as it has been put through a greater part of legal amendments. Thus, established internet conglomerates see an urgent need to enter the space before they miss out the opportunity to get on the boat as regulators are firmly stepping in and enforcing restrictions that make it harder to obtain license enabling to conduct fair business within crypto sphere.

The fact does stand that acquisition leads to greater consolidation, hence it is no wonder that following a recent announcement of Bitstamp sellout, video gaming company Nexon Korea was being alleged of buying the oldest Bitcoin and cryptocurrency exchange, although the company itself denied any rumors of this lucrative purchase.

With an estimated 3 million registered accounts and 500,000 active trading accounts, Bitstam represents the only fully licensed crypto exchange in Europe. It was formed back in 2011 and as soon as Chine has introduced a ban on the crypto trading platform, the exchange was forced to move its headquarters in Luxemburg where it is currently operating. Today, the daily trading volumes on Bitstamp estimates around $500 million, making it as the 10th largest exchange according to CoinMarketCap.

The rumors about its acquisition by Nexon Korea appear to have started with a report by Business Insider according to which Nexon was said to be a possible buyer of Bitstamp in a deal that is reportedly worth $350 million. Notably that in late March, Bitstamp has already been announced acquiring by unnamed South Korean investors for around $400 million.

However, during a press conference held at Nexon Korea’s headquarters in Pangyo, company’s CEO Lee Jung-hun dismissed as false the information provided by anonymous sources to Business Insider saying:

“Nexon Korea does not have anything to do with a Bitstamp acquisition and we do not have any plans to link cryptocurrencies with our game business.”

Lee Jung-hun became CEO of the gaming company worth approximately $13 billion, in January, and the abovementioned press conference was his first public appearence in this role. During the conference, Lee Jung-hun shared his vision and direction for the gaming company that was founded in Seoul, South Korea. Additionally he noted that company’s statement concerning a false Bitstamp purchase did not mean Nexon would ignore the use of blockchain in video game development as the technology has plenty of potential in this area.

Nexon, which released its first game in 1995, now employs close to 6,000 people and has developed the Korean and Japanese versions of high-profile PC and mobile games such as Counter-Strike and FIFA Online. Since the Nexon’s recent acquisition rumors have been quashed due to the claimed indifference of cryptocurrency, it appears to be ambiguous as the company’s owner,  a Japan-based NXC Corporation, last year bought a controlling 65 percent stake in the Korean crypto exchange, Korbit.

Cryptocurrency news, Gaming, News
Sofiko Abeslamidze
Author: Sofiko Abeslamidze

Sofiko is a freelance fintech copywriter at Coinspeaker. With a Bachelor degree in International Business and Economics, Sofiko has been deepening her knowledge of an agile innovative industry primary focusing on the robust blockchain technology and cryptocurrencies. As a bank employee, Sofiko particularly keens on crypto and blockchain integration into the established banking systems.

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