Cryptocurrency exchange Korbit is encouraging customers to use its coin lending service with the provocative slogan, "Borrow from 30 million won (KRW) right away."
According to the financial industry on the 30th, Korbit has a 'Coin Lending' tab on its KRW/virtual currency deposit/withdrawal screen.
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The company placed an advertising tagline, "Borrow from 30 million KRW immediately," directly below the tab. Since deposits and withdrawals are frequently accessed by users, the company is essentially promoting the lending service here. Korbit offers a coin lending service worth 30 million KRW to users with collateral assets of at least 5 million KRW and at least 10 transactions. The available amount increases based on performance. Korbit charges a 0.05% application fee and a 0.002% hourly usage fee.
Coin lending is a service where users deposit virtual currency or Korean Won as collateral, and the exchange lends the user the virtual currency they need. Since the exchange may initiate forced liquidation if the collateral asset price falls below a certain level, the risk of loss can increase during periods of high volatility. A financial industry insider pointed out, "While lending services can increase investment returns, they can also lead to significant losses. Ultimately, exchanges encourage this practice because of the fees."
Some say Korbit's risk warnings are relatively lacking. When you access Bithumb's coin lending service, a pop-up window appears warning you of potential losses and the risk of automatic repayment. Similarly, Coinone requires users to answer a quiz about the service before proceeding to the next step when clicking the "Coin Borrowing" tab. In contrast, Korbit places the risk warning at the bottom of the screen, requiring users to scroll down to view it.
- Reporter Do Ye-ri
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