The global cryptocurrency market capitalization has lost nearly 1300 trillion won in about a month and a half. This is due to the fact that the US has signaled that it will soon raise the key interest rate, and China has tightened its crackdown on cryptocurrency mining, and negative factors overlapped and lowered the price in a short period of time.
In addition, in Korea, as exchanges began to organize ‘Job Coins’ to report businesses following the enforcement of the ‘Special Financial Information Act (Special Provisions Act)’, investor anxiety increased, conflicts with coin issuers increased, and the cryptocurrency market became ‘inside foreign exchange’. ‘ is suffering from
China tightens crackdown on mining in response to US interest rate hike signal Bitcoin’s ‘dead cross’ concerns
According to Trading View, a cryptocurrency information site on the 22nd, the market capitalization of cryptocurrencies at 6 am on the same day was counted at 1.269 trillion dollars (1436 trillion won). This is a decrease of 48.5% (1292 trillion won) from the record high on May 8 (2729 trillion won).
Bitcoin, the leader of the cryptocurrency, fell to the 36 million won level on the domestic exchange Upbit at 9 a.m. on the same day. It is less than half of the record high on April 14 (81,994,000 won). The international price also fell to the $31,000 level at one point.
The decisive blow came after the US Federal Reserve (Fed) recently signaled that the target rate hike could be moved up to 2023, earlier than originally planned, and the Sichuan province of China has ordered 26 bitcoin mining companies in its jurisdiction to close. The People’s Bank of China is known to have even urged Alipay and some major banks to crack down on cryptocurrency transactions. Wetan is a system in which the authorities call in businessmen and others to confess their mistakes and press for correction. As Reuters and others report that “Bitcoin has entered a ‘dead cross'”, concerns about the collapse are growing. A dead cross is when the short-term moving average of an asset price falls below the long-term moving average, indicating a long-term decline.
Conflict exploded until the lawsuit was filed in a pile… Patent dispute sparks
In the midst of this, exchanges in Korea are showing a more chaotic aspect as they are arranging ‘bad coins’ in a pile. Eventually, cases began to appear that objected to the unilateral trade-off of the exchange, saying it was unfair.
In fact, Pica Project, the issuer of Pica coin, which was expelled from Upbit, filed a lawsuit with the Seoul Central District Court for ‘confirmation of termination of transaction support’. Quiz Talk is also foreshadowing legal action. When Pika even raised suspicions that Upbit actually demanded a ‘listing fee’ during the listing process, Upbit took a hard line, saying, ‘I will hold civil and criminal responsibility for the false information’, and is falling into a muddy fight.
It seems that a patent dispute has arisen. The Seoul University of Foreign Studies Graduate School Industry-Academic Cooperation Foundation announced on the 18th that Dunamu, the operator of Upbit, filed a patent infringement lawsuit claiming that it was using patented technology related to the cryptocurrency electronic wallet system without permission. The claim is that the technology used to prevent money laundering under the Special Act infringes on patents. If it is not accepted that the proof of contents has been sent to Bithumb, Korbit, and Coinone, it is in the position to review the lawsuit. The exchanges countered that they had never infringed patents, saying, “We have provided related services before the patent application was filed.”