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Trends in Exchange Markets and Coinone’s Competitive Advantages

June. 2018 Key success factor has changed from gaining market recognition to solving liquidity challenge and listing appropriate altcoins

Before Began Crypto Craze Price Crash Recession the mass attention to draw attention (~’17.Feb) (’17.March~August) (’17.Sept~’18.mid Jan) (’18.Jan~Feb) (’18.March~Present) • Existing customers hold • Non-recognition or • High-risk preferred • Massive entrance to the • Newcomers disappeared Market trades, maintains wait C indifference investors began to market • Converted crypto to fiat, Response and see strategy U trade large scale withdrawal S T Investment • Began to invest in Altcoin • Increase in short-term trades of altcoins to recover the O strategy loss M • • Began to use foreign • Continue to move to foreign exchange E Usually used R Exchange domestic exchange exchange ‒ Due to Korean reverse premium, high volatility, ‒ To avoid government stronger government regulation regulation E • Entered the market to • Active entrance of • Late entry (e.g. ) • Foreign exchanges X Player develop financial service exchanges enter domestic market C using cryptocurrency −OKEX, H A N • Increase in exchange • Enhance existing service • Sharp decrease in Operation G revenue but operational and seek overseas exchange revenue E overload expansion

Competition • To attract new customers, focused on brand • Focusing on gaining volumes and profitable Landscape recognition and server stability altcoins to keep existing customers

2 C2C market has grown after China exchange shutdown but F2C market is still functioning as the mainstream market Cryptocurrency volume trade amount market share change per base currencies

21% USD 33% 30% 33% 41% 39% 45%

32% 26% 21% 27% KRW 14% 17% 12% 4% 6% JPY 6% 8% 3% 7% 2% 2% 4% EUR 2% 2% 3% 18% 12% 3% 10% Fiat others 2% 4% Common 2% 17% 7% 17% USDT 3% 4% 16% C2C 5% 5% Definition 3% 24% 20% About 60% Pure 17% 16% BTC 17% 13% CNY Invest C2C 0% 0% 1% 3% 2%Crypto others 2% 201710 201711 201712 201801 201802 201803 201804

• KRW market: Top2 F2C Market • BTC and other cryptocurrency trades, which are pure C2C market, is less than 20%

3 Started as a pioneer, Coinone became global top exchange

• 2014. 10 (BTC) exchange service launch (3rd in Korea)

• 2015. 03 Introduced Coinone Multi-sig wallet Coinone monthly trading volume • 2016. 04 First player to list ETH/KRW pair (Unit: USD mn) • 2017. 03 Ranked the 9th 25,000 • 2017. 05 Listed XRP (1st official partnership in Korea) 20,000 • 2017. 06 Ranked the 2nd Crypto exchange by volume globally 15,000 • 2017. 08 Listed on the exchange 10,000 • 2017. 08 First exchange to sign the cyber liability insurance • 2017. 08 Listed Qtum on the exchange 5,000 • 2017. 10 Listed on the exchange 0 17.04 05 06 07 08 09 10 11 12 18.01 02 03 • 2017. 11 Listed IOTA on the exchange

• 2017. 11 Daily Trading Volume reached over USD 1bn

• 2018. 02 Launched mobile App (AOS) • 2018. 04 Listed OMG and EOS

4 Starting from systemization of exchange’s core component, Coinone aims to expand business scope to the whole crypto ecosystem

Expand business area based on exchange and its infra

Service Remit Payment Wallet ATM

• Developed high functioning Long Fund Investment Algorithm next generation core matching engine /Short /Trust • 2 track expansion strategy: Middleware Security Compliance FDS Analytics 1) Launch new platform

supporting crypto-crypto pairs Infra Coin Miners Alliance 2) Establish local exchanges handling fiat currency ▪ Fast and inexpensive overseas T RANSFER PAY remittance/ low cost payment solution

▪ Cryptocurrency-specific investment/

INVESTMENT T e c h n o l o gy Intensification of Server & Security Expertise

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