Upbit exchange operators will expand into another area of trading or more specifically, the company behind the leading South Korean Exchange Dunamu will launch an OTC platform for unlisted stocks. Let’s find out more about this news in the upcoming blockchain news.
Dunamu will open the platform that will host all types of unlisted stocks according to the Korea Herald. The platform will partner with Samsung Securities and the data company Deep Search to launch the platform by the end of the month and the platform will become available in the form of an app to match the growing demand for access to stock trading for retail buyers. The move by the Upbit exchange operator adds to the global movement to bring stock trading to a more democratic audience as more and more startups find ways for commission-free stock trades. Dunamu will offer a slightly riskier stock selection.
The new platform will operate with unlisted stocks where there are fewer requirements for reporting. When all of the stocks are aggregated to one platform, Dunamu will resolve information asymmetry or the inability to learn more about a single stock. This way, fraud, and hype can be avoided and the unlisted stocks are usually traded through informal websites with limited reporting capabilities. The Dunamu platform will eliminate the random brokerage fees and offer a more secure way of stock ownership transfer. The Deep Search Company, on the other hand, will contribute its analytics system to determine the risks for the new companies. The chief strategy officer of Dunamu Lim Ji-hoon 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 saw the wave of increased investment interest from the people in the country that want to find higher levels of return from riskier products. Beyond cryptocurrencies, the unregistered stocks offer higher volatility but a strong chance of faster gains. The Korean financial regulator is becoming more aware of the risks aiming to curb the riskiest products or scams.
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