NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%

Entrepreneur Uses $67 Million Life Savings to Acquire a Cryptocurrency Exchange

Joseph Young
Joseph Young
4 years ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Earlier this month, it was revealed that Eric Cheng, a Singaporean entrepreneur, spent all of his life savings and sold his properties including two Rolls Royces, Lamborghini, Ferrari, and a Porsche to acquire a 100 percent stake in a Japanese cryptocurrency exchange called BitTrade.

Why Cheng was Willing to Take the Risk

Less than a week ago, Bithumb, South Korea’s largest cryptocurrency exchange, suffered a security breach, losing more than $30 million in customer funds stored in digital assets such as Bitcoin and Ethereum. The Bithumb team officially disclosed that the company will fully compensate its clients with company funds stored in cryptocurrencies, which as of June 2018, are worth $450 million.

“Bithumb has been administering company’s asset and customers’ asset, and all customers’ cryptocurrencies as well as KRW asset are safely stored on cold wallets and banks respectively. Moreover, we would like to ensure that Bithumb currently has about 500 billion KRW worth of company funds,” said the Bithumb team.

However, for small cryptocurrency exchanges, it is difficult to cover losses occurred in hacking attacks, especially if the amount hacked is larger than the company’s existing capital. For instance, the largest cryptocurrency exchange in Japan known as Coincheck lost $450 million worth of NEM in a recent hacking attack and the failure to pay back investors led to the exchange declaring bankruptcy.

Hence, there are risks of acquiring a cryptocurrency exchange, despite its high profit margins, as highly experienced and talented developers, security experts, and IT specialists are needed to oversee the exchange. Even Coincheck, formerly the biggest exchange in Japan, admitted that its hack was resulted by the company’s lack of security experts.

Cheng, who spent all of his life savings worth $67 million and then some to acquire BitTrade said he does not regret taking the risk and is satisfied with his acquisition.

“The cryptocurrency industry is growing exponentially. Against this backdrop, the key to capturing the rising demand is having a well-regulated and licensed outfit. With this Japanese FSA-licensed platform, I will work closely with the regulators to scale this platform globally,” Cheng said.

It is likely that Cheng aggressively pushed his plans to purchase BitTrade because of the regulatory state of the exchange. BitTrade remains as one of the dozen cryptocurrency exchanges in Japan that are licensed and approved by the Financial Services Agency (FSA), and the process of being approved by the government agency to operate as a digital asset exchange is expensive and difficult.

Accumulation Period

The cryptocurrency market has entered a bear cycle amidst a 70 percent correction. Major cryptocurrencies like Bitcoin and Ethereum that have been less volatile against reserve currencies like the US dollar and euro in comparison to small cryptocurrencies have fallen 65 percent from their all-time high.

Still, entrepreneurs like Cheng and investors in the public market are willing to take risks and express interest towards the cryptocurrency market. This week, Digital Currency Group CEO Barry Silbert, who is involved in some of the biggest cryptocurrency businesses in the industry including Coinbase and Blockchain, has said that Grayscale, the investment arm of DCG, had the best fundraising week in 2018, raising more than $20 million in a single week.

Tweet123Share196ShareSend
Joseph Young
Joseph Young

Joseph Young

Joseph is a web developer and designer, writer and a passionate musician who loves to travel often. He's worked as a researcher for a number of venture capital firms and as a freelancer designer for resorts and corporations in Korea and the Philippines.

Comments 3

  1. RJLigier says:
    7 years ago

    How can you lose when you run the house? It’s a new world and the globalists/communists no longer control the game.

    Reply
  2. Jared Odulio says:
    7 years ago

    you don’t actually need that much money to run an exchange

    Reply
  3. Matt Kleinsmith says:
    7 years ago

    Big Banks will continue to block crypto until they can figure out a way to get their piece

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Comments 3

  1. RJLigier says:
    7 years ago

    How can you lose when you run the house? It’s a new world and the globalists/communists no longer control the game.

    Reply
  2. Jared Odulio says:
    7 years ago

    you don’t actually need that much money to run an exchange

    Reply
  3. Matt Kleinsmith says:
    7 years ago

    Big Banks will continue to block crypto until they can figure out a way to get their piece

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin Consolidates Gains

Bitcoin Consolidates Gains – Is a Bigger Move Coming Next?

Bitcoin price is showing positive signs above $115,000. BTC is now consolidating and might rise further if it clears the...

Aayush Jindal 5 hours ago
xrp-flambee-marche-crypto

XRP et flambée du marché crypto : que faire les prochaines semaines ?

Depuis le début d’août, l’air est différent. Wall Street respire mieux, les écrans clignotent à nouveau dans le vert, et...

guillaumev 10 hours ago
solana-depasse-bnb-capitalisation-record-sol

Solana dépasse à nouveau BNB : vers une capitalisation record pour SOL ?

En septembre 2025, Solana vient, encore une fois (c’est une habitude) de franchir un cap symbolique. Son token a dépassé...

guillaumev 10 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Kas ir Pepe Coin

The Big PEPE Price Breakout: Falling Wedge Pattern Points To 64% Rally

Scott Matherson 1 hour ago
Ethereum Price Pullback Limited

Ethereum Price Pullback Limited – Support Levels Could Spark Upside Again

Aayush Jindal 4 hours ago
pengu-solana-surge-altseason-heats-up-pepenode-100x-hype-tw

隨著Pengu、Solana價格上漲 山寨幣季愈演愈烈下個100倍幣PEPENODE被搶購

Mark Mak 5 hours ago

Premium Sponsors

Press Releases

  • 仮想通貨投資の専門家が推す有望銘柄 ― XRP・カルダノ以上の期待

    仮想通貨投資の専門家が推す有望銘柄 ―...

    10 hours ago
  • 注目のico仮想通貨が100万ドル調達 ― マイン・トゥ・アーン型ミームコインの可能性

    注目のico仮想通貨が100万ドル調達 ―...

    10 hours ago
  • イーサリアム 今後の価格予測:機関投資と長期需要で2025年に9,000ドル到達の可能性

    イーサリアム...

    10 hours ago
  • ビットコイン 今後の価格予測:インフレ上昇の中で利下げ期待強まり、11万5,000ドル付近で推移

    ビットコイン...

    10 hours ago
  • シバコイン 今後はどうなる? レジスタンス突破の可能性を探る

    シバコイン 今後はどうなる?...

    10 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.