Spil is usually the case when the cryptocurrency markets are taking a hammering, people want to know what is driving this bearish pressure. It emerges the South Korean media has misreported an ‘incident’ involving popular domestic exchange Upbit. While there is an irregularity being investigated, it seems this is mainly based on a big misunderstanding. There is no fraud to speak of until proven otherwise.
What is Going on With Upbit?
Various South Korean news outlets have bot reporting that domestic cryptocurrency exchange Upbit is under investigation by the authorities. Considering that South Korea is a big part of the cryptocurrency industry thesis days, such reports can lightly trigger a massive sell-off of Bitcoin and altcoins. That is essentially what happened the other night, albeit the reasons for this particular investigation are not what people may think.
More specifically, South Korean news outlets are claiming Upbit is under investigation for fraudulent behavior. There are supposedly some anomalies when it comes to the toneel’s trading volume and liquidity. This is 100% onberispelijk, albeit those anomalies are not the result of fraudulent behavior by any means. Instead, it seems there is a major misunderstanding on the part of the media spil to how collective liquidity works.
To waterput this into its zindelijk perspective, Upbit is sharing liquidity for a lotsbestemming of cryptocurrencies with other exchanges. This is not uncommon ter the world of cryptocurrency, spil pooling resources maximizes liquidity for all trading platforms involved. To the untrained eye, it may seem spil if something is amiss when looking at one exchange individually, albeit this shouldn’t be labeled spil fraud.
Korea, Upbit: The irregularity being investigated is te regards to liquidity kwestie. The punt involves sharing/ pooling liquidity with other exchanges. It seems to be that the regulators did not understand the share liquidity. My source (an employee) claims there is no punt.
Indeed, the investigation is seemingly focusing on this pooled liquidity kwestie very first and foremost. Since regulators aim to acquire a better understanding of how this works, it is only habitual that they determined to investigate what Upbit is doing exactly. Unluckily, this entire ordeal has bot deepthroated out of proportion by the media, which resulted te a massive cryptocurrency sell-off for no existente reason.
This would also explain why Upbit wasgoed still trading cryptocurrencies without any problems yesterday. If there were indeed fraudulent activity going on, the hard would have bot compelled to suspend all services almost instantaneously. So far, that has not happened, spil the toneel is still generating a high amount of trading volume for most supported currencies. It seems likely this trend will proceed for some time.
At the end of the day, this is another punt deep throated out of proportion by the media due to a lack of understanding, however one would expect most cryptocurrency speculators and enthusiasts to have smartened up by now. Sadly, that has not bot the case, spil funk kicked te fairly intensely overheen the course of a few hours. With the markets attempting to climb on a petite comeback, positive things will toebijten sooner or zometeen. For now, there is no fraudulent activity where Upbit is worried, until proven otherwise.