Ms. A does not engage in virtual asset transactions at all but has signed up for memberships at three domestic virtual asset exchanges. This is because new customers can immediately receive a congratulatory bonus for signing up. By participating in various events, such as 'airdrops' (free distributions) that virtual asset exchanges often hold or convenience store coupons, one can earn some nice cash. Ms. A has reportedly earned over 200,000 won in just two months using this method and is introducing the exchange sign-up process to her friends.
In this era of high prices, those who utilize smartphones for quick cash, known as the 'app tech' crowd (app + financial technology), have begun taking an interest in virtual asset exchanges. This is due to the recent boom in the virtual asset market, prompting exchanges to launch aggressive marketing campaigns in collaboration with existing industries to attract new customers.
According to the virtual asset industry on the 17th, four out of the five major fiat currency virtual asset exchanges in Korea, excluding Gopax, are currently conducting events to attract new members. The exchange offering the largest rewards for new customers is Bithumb. Recently partnered with GS25 convenience stores, Bithumb provides up to 100,000 won in cash for newly registered members. The first 10,000 people who enter a coupon code in the Bithumb application will receive a 30,000 won mobile gift certificate for convenience stores and 50,000 won in Bithumb points.
Completing the Bithumb welcome commission allows individuals to receive an additional 20,000 won in Bithumb points. Since Bithumb points can be exchanged for cash once accumulated to over 5,000 won, it is essentially the same as receiving cash. In a similar process, Coinone offers up to 30,000 won in cash. If one registers after using the event code associated with Catch Table, they will receive bitcoin worth 10,000 won, and an additional bitcoin worth 20,000 won will be granted upon making their first transaction.
Once the new member sign-up event is completed, the next step is the airdrop. Virtual asset exchanges distribute small amounts of newly listed virtual assets for free to investors who meet specific conditions to stimulate trading of the newly listed assets; this is called an airdrop. In a recent case of an airdrop for SOPH conducted by Upbit, participants received a certain amount of SOPH just for answering a simple quiz about the project.
SOPH rose to about 300 won per unit after its listing, and investors who received SOPH for free were able to make profits ranging from 25,000 won to 30,000 won by selling after the listing. Airdrops are frequent events for exchanges that conduct new listings, and those in the app tech crowd actively monitor the exchanges' announcements to share the schedules and conditions for airdrops. In addition to airdrops, virtual asset exchanges have formed extensive partnerships with distribution, finance, culture, and arts industries, offering benefits such as pre-booking tickets or receiving cashback on card payments in exchange for exchange points.
The reason the app tech crowd is turning their attention to virtual asset exchanges is that the unit of cash that can be earned is different. Apps known for app tech, such as Toss and Cashwalk, allow participants to earn about 10 won or 100 won at a time, whereas in the virtual asset space, one can earn a minimum profit of tens of thousands of won.
The virtual asset market is still an emerging investment destination, attracting new members. For this reason, exchanges are making efforts to secure new members and market share. Looking at the advertising expenses in the first quarter for Upbit and Bithumb, which hold over 90% market share in Korea, they were 8 billion won and 9.6 billion won, respectively. This indicates that they have the capacity to offer several tens of thousands of won to actively attract new members.
Moreover, virtual asset exchanges have a high barrier to entry compared to existing app tech. The concept of virtual assets is unfamiliar, and individuals must create an account at a bank that supports the exchange and link it to their exchange account. After that, they also go through a verification step for the KYC (Know Your Customer) system. To induce such actions, exchanges offer various tiered incentives for new sign-ups and first transactions, with the amounts being significantly larger than those of ordinary app tech.
A representative from a virtual asset exchange noted, "Since the boom in virtual assets arrived following the election of President Trump last year, domestic exchanges have been increasing marketing expenses to attract new members, and marketing expenses are showing significant results. Initially, marketing began in the form of simple incentives, but now it is expanding to collaborate with everyday brands like Yogiyo, KakaoBank, GS25, and Emart to provide a more natural virtual asset investment experience."