Upbit Operator Dunamu to Build OTC Stock Platform
The operator of the Upbit exchange extends into another area of trading. Dunamu, the firm behind one of the leading South Korean exchanges, will launch an OTC platform for unlisted stocks.
Dunamu Aggregates Data, Trading for Unlisted OTC Stocks
Dunamu will open a platform to host all types of unlisted stocks, reported The Korea Herald. Dunamu will partner with Samsung Securities and data firm, Deep Search, to launch the platform by the end of the month. The platform will be available in the form of an app, to match the growing demand for easy access to stock trading for retail buyers.
The move by Dunamu adds to the global drive to bring stock trading to a more democratic audience, as more and more fintech startups find ways for commission-free stock trades. In the case of Dunamu, however, the stock selection is slightly riskier.
The new platform will deal with unlisted stocks, where there are less requirements for reporting. By aggregating all stocks into one platform, Dunamu will aim to resolve information assymetry, or the inability to learn more deeply about a stock. This way, fraud and hype may be avoided. Unlisted stocks are usually traded through informal websites, with limited reporting capabilities.
Low Fees, More Data and Analytics
The Dunamu platform will also eliminate random brokerage fees, and offer a more secure way of stock ownership transfer. Dunamu will aggregate corporate information, based on the experience from its Stock Plus trading app. Deep Search will contribute its analytics system to determine risks for new firms.
Lim Ji-hoon, Dunamu’s chief strategy officer commented,
Most unlisted stock transactions in South Korea are made via online community bulletin boards and offline trades, leading to uncertainties surrounding the parties’ identities and the information needed in the investment,
We will make efforts to provide an innovational investment for all unlisted stock investors and sellers by continuing the development of the platform based on our experience of operating Stock Plus
Dunamu caught the wave of increased investment interest from Koreans, which are seeking higher levels of return from riskier products. Beyond cryptocurrencies, unregistered stocks offer higher volatility, but also a chance of faster gains. Korean financial regulators are also highly aware of the risks, aiming to curb the most risky financial products or scams.
The Upbit exchange carries lowered volumes of around $110 million in 24 hours. It’s one of the chief markets for Ripple’s XRP. But as altcoins entered a bear market and volumes slowed down, even the Korean won market failed to lift assets out of their depression.
What do you think about Dunamu’s move into OTC stocks? Share your thoughts in the comments section below!
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