Bitcoin
BTC$64 158.52

-5.39%

Ethereum
ETH$3 293.13

-7.47%

Tether
USDT$0.999409

0.05%

Solana
SOL$179.39

-13.15%

Binance Coin
BNB$515.41

-8.38%

XRP
XRP$0.590443

-3.01%

97% of Korean Exchanges Nearing Bankruptcy


26 Aug 2019

#Bitcoin

In one of its latest reports, BusinessKorea, a reputable Korean online business portal established more than 30 years ago, revealed a shocking truth about the present condition of nearly all cryptocurrency exchanges that currently operate in this jurisdiction. The report claims that the mind-blowing 97% of all South Korean exchanges are balancing on the edge of bankruptcy.

Most exchanges are hanging by a thread


After having carried out an all-encompassing assessment of the state of affairs of all major cryptocurrency exchanges in the country, the reporters arrived at a rather frustrating conclusion that only 3% of these entities showcase the satisfactory financial health. The rest are approaching the bankruptcy abyss from which there is practically no way back, especially in this young yet extremely competitive market.

Furthermore, the overall ranking of all South Korean crypto exchanges leave much to be desired as the likes of Upbit, probably the most popular one, found itself placed at the 45th spot of CoinMarketCap’s Top 100 crypto exchanges by adjusted trading volume. The rankings by reported volume push Upbit even lower to the 58th position.

Whilst the bigger exchanges manage to keep their heads above the water, for the time being, the smaller ones are already one step away from falling into oblivion. Just several days ago, a newly emerged crypto exchange PrixBit, which had already launched a beta version and carried out the sale of PRX tokens, announced that due to “financial difficulties” the founders decided to shut down the platform and refund all deposits.  

The reasons behind the crisis


Allegedly, one of the primary reasons behind this situation constitutes in the ever-decreasing volume of transactions which, in its turn, stemmed from the fact that the growing number of blockchain startups that originate in South Korea prefer to list their newly issued token on foreign exchanges, thus driving the domestic trading volume into the ground.

Over the past few months alone, such projects as Sigma Chain, Ziktalk, and Payexpress have officially sought listing on BW.com, a crypto exchange domiciled in China and listed among the Top 20 platforms in the world. Other ones, like Medibloc and Temco, are also seeking foreign accommodations, despite being already listed on the domestic platforms. Apart from China, the exchanges based in the United States and Singapore are also considered as popular destinations for the sprouting blockchain projects.

Such a mass migration is explained by the fact that foreign exchanges began forming the market for the South Korean won in an attempt not only to broaden the scope of offered services but also to pouch the promising startups.

The toughening of regulations, especially the ones that concern anti-money laundering, only aggravates the situation. There are rumors swirling around that the Financial Intelligence Unit (FIU) of the main financial body of South Korea is hatching a plan to establish direct regulatory control over all crypto exchanges in the country. It remains to be seen whether these alarming tendencies would result in a complete deterioration of the crypto market of this prosperous Asian state.    

Author: Alex Paulson for Crypto-Rating.com       

Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 64.4% 75 $64 158.52 -5.39% -10.80% $1 261 248 113 536 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 69 $3 293.13 -7.47% -17.83% $395 430 984 754 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $0.999409 0.05% -0.09% $103 556 936 151 USDT 7 days price change
4 Solana (SOL) SOL Solana predictions 62% 79 $179.39 -13.15% 18.30% $79 627 852 258 SOL 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 58% 90 $515.41 -8.38% -2.73% $77 072 765 613 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 70.4% 60 $0.590443 -3.01% -15.03% $32 356 386 856 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 91.2% 2 $1.000008 0% 0.01% $31 328 635 187 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 62% 76 $0.617297 -8.59% -17.19% $21 954 351 712 ADA 7 days price change
9 Avalanche (AVAX) AVAX Avalanche predictions 62.8% 73 $57.23 -5.30% 20.60% $21 593 794 168 AVAX 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 58% 89 $0.130659 -10.26% -23.41% $18 753 310 664 DOGE 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 59.2% 94 $0.000025 -8.23% -21.57% $14 976 749 268 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 64% 69 $3.79 -1.80% 6.60% $13 149 340 282 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 57.2% 87 $9.05 -11.08% -15.38% $12 879 745 483 DOT 7 days price change
14 TRON (TRX) TRX TRON predictions 85.2% 19 $0.118409 -6.02% -10.42% $10 399 825 289 TRX 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 85.6% 20 $0.117955 -6.54% -10.97% $10 359 849 114 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.