As South Korean cryptocurrency investors continue to utilize overseas exchanges, users of the global crypto exchange Binance are spending significantly more time on the platform’s mobile app compared to major South Korean exchanges. This extended usage is attributed to the demand for derivatives trading and a wider array of investment services.
A report from artificial intelligence (AI) tech firm IGAWorks reveals that from January to May this year, Binance users in South Korea spent an average of 306 minutes per month on the app.
In contrast, during the same period, users of major domestic exchanges logged considerably less time: Upbit at 159 minutes, Bithumb at 130 minutes, Coinone at 44 minutes, Gopax at 30 minutes, and Korbit at 23 minutes. Binance users’ engagement time is about 1.9 times that of Upbit and about 2.4 times that of Bithumb.
Industry experts point to Binance’s diverse investment offerings, unavailable on domestic platforms, as the key driver behind this increased engagement.
While South Korean exchanges primarily focus on spot trading, Binance offers a comprehensive suite of services. These include derivatives trading for futures and options, as well as innovative features like Launchpool, Megadrop, and pre-market trading. This allows users to go beyond basic buying and selling, engaging in new project launches, asset management, and revenue generation all within a single ecosystem.
A prime example of Binance’s innovative offerings came in May when it listed SPCXUSDT, a perpetual futures product tied to SpaceX’s anticipated initial public offering (IPO). This product allows investors to speculate on pre-IPO corporate valuations without owning actual stock, marking a novel investment avenue.
These service differences significantly impact user behavior. While domestic exchange users typically access apps for spot trading and price monitoring, Binance users engage in a broader range of activities. These include managing futures positions, adjusting margins, and participating in new projects. Notably, leveraged derivatives trading necessitates frequent real-time position management due to price volatility, naturally increasing app usage time and frequency.
Yoon Seung-sik, director of Tiger Research Center, explains that Upbit and Bithumb primarily offer spot trading, whereas Binance has built a comprehensive ecosystem around derivatives and asset utilization. There’s a substantial gap in functionality and the number of listed assets.
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As South Korean crypto enthusiasts increasingly turn to international exchanges, Binance users are spending substantially more time on the platform’s mobile app compared to those of major domestic exchanges. This trend is driven by the demand for derivatives and a diverse range of investment products.
IGAWorks’ mobile index shows that from January to May this year, Binance users in South Korea averaged 306 minutes of monthly app usage.
During the same period, usage times for major domestic crypto exchanges were significantly lower: Upbit at 159 minutes, Bithumb at 130 minutes, Coinone at 44 minutes, Gopax at 30 minutes, and Korbit at 23 minutes. Binance users’ engagement is about 1.9 times that of Upbit and about 2.4 times that of Bithumb.
Industry insiders attribute Binance’s high engagement to its wide array of investment services not offered by domestic crypto exchanges.
While South Korean platforms primarily focus on spot trading, Binance offers a comprehensive suite of services. These include derivatives trading for futures and options, as well as innovative features like Launchpool, Megadrop, and pre-market trading. This allows users to engage in activities beyond simple trading, such as participating in new project launches, managing assets, and generating income – all within a single platform.
A notable example occurred in May when Binance listed SPCXUSDT, a perpetual futures product linked to SpaceX’s anticipated IPO. This product generated hundreds of millions of dollars in trading volume shortly after launch, capturing significant investor interest. It allows speculation on pre-IPO corporate valuations without owning actual stock, representing a cutting-edge investment tool.
These service disparities also influence how users interact with the apps. While domestic exchange users primarily check prices and execute spot trades, Binance users engage in a variety of activities including futures position management, margin adjustments, and new project participation. Particularly with leveraged derivatives trading, the need for constant position management due to price fluctuations naturally increases both the frequency and duration of app usage.
Yoon Seung-sik, director of Tiger Research Center, notes that the key difference lies in the breadth of functionality and the number of listed assets. While Upbit and Bithumb focus on spot trading, Binance offers a wide spectrum of activities related to derivatives trading and asset utilization.