[Asia Economy Reporter Lee Seon-ae] Cryptocurrency Bitcoin is trading in the 68 million KRW range on the 21st. At 10:03 a.m. on this day, Bitcoin was trading at 67.72 million KRW on Korbit. It continues to fluctuate in the 68 million KRW range on Bithumb and Upbit as well. Unlike the stock market, cryptocurrency trading occurs on an exchange-by-exchange basis. Therefore, even for the same type, trading prices vary slightly depending on the exchange.
Bitcoin was in the 6 to 7 million KRW range in March last year when the impact of COVID-19 was significant. However, it surpassed 20 million KRW at the end of November last year, 30 million KRW in December, and this year it rose to 40 million KRW in January and 60 million KRW in February, reaching around 65 million KRW. After a short-term sharp decline, Bitcoin has rebounded again this month. It has risen more than 100% since the beginning of this year and over 30% this month alone. As a result, investor interest has concentrated, and cryptocurrency is establishing itself as an investment destination. However, the number of false disclosures is increasing, and many coins are being delisted, so investors need to be cautious.
According to the domestic cryptocurrency exchange industry, the number of coins listed on the won market (KRW market) of the four major exchanges?Bithumb, Upbit, Korbit, and Coinone?has exploded in a short period.
When Upbit was established in October 2017, only Bitcoin was listed on the won market. As the number of listed coins gradually increased, as of the 19th, 114 coins are traded on Upbit’s won market. Bithumb, which opened under the name XCoin on January 5, 2014, had only eight coins listed as of May 18, 2017, three years after its establishment. It reached ten coins when Quantum was listed on October 20 of the same year.
Bithumb also accelerated listings afterward, and as of the 19th, the number of coins has increased to 143. Coinone, which officially opened its exchange in October 2014, started with only Bitcoin but has increased its listed coins to 181. However, Korbit, the first domestic cryptocurrency exchange that opened in July 2013, currently has only 30 coins listed on the won market. This reflects a conservative listing approach, but this year, they plan to activate listings.
Each exchange lists coins after internal screening based on business model sustainability and marketability. While the number of listed coins has rapidly increased, the number of coins disappearing from exchanges has also risen. In cryptocurrency exchanges, this is called delisting, which is similar to delisting in the stock market.
Since November 2019, 37 coins have been delisted on Bithumb. Upbit has also removed 14 coins. Exchanges usually decide on delisting after designating coins as trading caution items when legal violations, inappropriate coin usage, or technical vulnerabilities are found. When designated as a trading caution item, price volatility increases, so investors need to be careful. Above all, false disclosures are problematic. Unlike the stock market, there are no legal regulations on disclosures in the cryptocurrency market. Also, cryptocurrencies without clear positive factors like corporate earnings experience sharp price fluctuations when disclosures are made, and damages caused by false disclosures inevitably fall on investors.
Recently, on Upbit, the coin "GoMoney2," which was listed on the "Bitcoin Market," was delisted after controversy. The Bitcoin Market is a place where other virtual assets are bought and sold with Bitcoin, unlike the won market.
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