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“Eat money for money” All-in to MZ generation altcoins… The government doesn’t even think about creating playgrounds and rules

On the afternoon of April 29, an altcoin price is displayed on the status board of a cryptocurrency exchange. [연합뉴스]

“Most of the friends who invest in cryptocurrency don’t know what coin they invest in. Honestly, you don’t even need to know. Cryptocurrency investment is no different from the sipping game you used to play when you were younger or the ladder game you still play occasionally.” Yoon Deok-hee (22), a university student living in Mapo-gu, Seoul, said that cryptocurrency investment is “money for money,” and so on. Many people around him do it, but usually they don’t know which product they are investing in, and they invest in the atmosphere.

If you’re lucky, it’s a jackpot, or it’s a little bit
It is cheaper than Bitcoin and has a higher rate of change.
2030 High tide, 94% of domestic trading volume

100,000%’money copy’ in 30 minutes
“I know there’s a bubble, but jump in”

The government adheres to the principle of non-intervention and virtually neglects it
“Recognition of investment products, must be strictly managed”

It’s worth it. Recently, the cryptocurrency market, including bitcoin, has been raging. The daily transaction value of domestic cryptocurrency is 25 trillion won, exceeding the size of domestic stock trading. According to the office of Rep. Kim Byeong-wook (Democratic Party) of the National Assembly’s Political Affairs Committee, the number of new subscribers to the four major cryptocurrency exchanges (Upbit, Bithumb, Coinone, and Kobit) in the first quarter of this year amounted to 249,5289. Six out of ten new subscribers are from 2030 households (MZ households). There are 816,000 people in their twenties, 32.7% of the total. Those in their 30s accounted for 30.8% of 760,8775 people. In particular, according to Inin, an employment portal company, two out of three people started investing in coins less than six months ago.

Unlimited rise and fall, 24 hours a day, 365 days a year trading

As a result of a survey of 1855 office workers, 43.1% of respondents said that the investment period was 1-6 months and 23.8% were less than 1 month. 10.7% of respondents said they were less than 6 months to 1 year. This means that most of the novice investors who entered the cryptocurrency craze this year, ie,’Coin + Children’. This cryptocurrency craze is not unique to Korea. Since the end of last year, bitcoin prices have risen vertically, and the cryptocurrency investment craze is blowing around the world. However, among the cryptocurrencies in Korea, concerns are growing due to the high proportion of investments in’altcoins’ (cryptocurrencies excluding bitcoin), which are highly volatile.

Graphic = Reporter Lee Jeong-kwon gaga@joongang.co.kr

Graphic = Reporter Lee Jeong-kwon [email protected]

According to CoinMarketCap, which aggregates cryptocurrency investment information around the world, the share of bitcoin trading volume in the global cryptocurrency market is about 30%, but in Korea it is only 6%. The remaining 94% is an altcoin investment. The Altcoin Index (UBAI), which Upbit indexed the trading volume and price of altcoins, was 7543.01 as of the 26th, up five times from the end of last year (1707.52 on December 31st). “It means that the number of altcoin investors has increased significantly, and accordingly, the ransom price has skyrocketed,” said Lee Soo-jin, director of Upbit operator Doonamu. Bithumb’s altcoin index (BTAI) was 899 at the end of last year, but as of the 26th, it has soared to 3463.

Unlike bitcoin, which has a stable price, altcoins are highly volatile and have no substance. The representative one is DOGE coin. Dogecoin was made’for fun’ to satirize the cryptocurrency market such as bitcoin, and it has no practical use. Nevertheless, it has soared hundreds of percent at the words of a celebrity. There are more than 20,000 such altcoins worldwide. Kim Han-jin, senior research fellow at KTB Investment & Securities, said, “The volatility of altcoins itself is attractive to Corinne in 2030.” “The price is around 10 won and 100 won, so you can invest with a small amount of money. “It’s because you can get hundreds of percent of new profits.”

In fact, the altcoin Arowana Token (ARW), which was listed on Bithumb on the 20th of last month, started trading at 50 won at 2:30 pm on the same day, and soared to 53,800 won at 3:01 pm. It surged by 100,000% in 30 minutes. If you bought 10 million won for 50 won and sold it at 3:01, 10 million won became 10 billion won in just 30 minutes. This is a word commonly used when cryptocurrency prices skyrocket, and’money copying’ was made.

Experts sometimes explain this speculative market as’the bigger fool’s theory’. He knows that he is a’stupid’ who bought it at a higher price, but he is investing in anticipation that there will be a’bigger idiot’ to buy it at a higher price. Kim Mo (26), a job-ready student and a cryptocurrency investor, said, “I know well that there is a bubble in the market.”

The accessibility of cryptocurrency investment is also not bad. Like stocks, you can sign up for a cryptocurrency exchange and buy and sell stocks (coins) mediated by the exchange. However, the stock market has to trade within a limited time from 9:00 am to 3:30 pm, and the daily rise and fall is set at 30%, but cryptocurrency is unlimited. You can trade 24 hours a day, 365 days a year. There is no upper or lower limit, so there are cases of a 1000% increase and a 99% decrease in just a few minutes and hours. Another difference from stocks is that different exchanges have different cryptocurrencies that can be traded. This is because exchanges around the world, as well as Korea, only trade cryptocurrencies listed through self-examination.

There are far more types of altcoins in Korea than in the US

Exchanges usually earn money at a fee per cryptocurrency transaction, so it is advantageous to deal with more types of cryptocurrencies as an exchange. This is why domestic exchanges handle more cryptocurrencies than exchanges in the United States and other places.

Upbeat deals 178, and Bithumb second place deals 170. It is an analysis that this is a phenomenon that occurred when the interests of an investor who dreams of’maximizing profits’ and an exchange aiming to’maximize sales’ match. This is the reason for criticism that domestic exchanges have’launched the plate for altcoin speculation’.

This is why the government pulls out a’exchange closure’ card whenever the cryptocurrency market overheats. Experts agree, however, that it is not only good to close the exchange, but to acknowledge the global cryptocurrency investment flow, and to set up a’playground’ where investors can play properly. Acknowledging that cryptocurrency is an investment product, not “protect investors,” and creating a playground where investors, exchanges, and foundations (cryptocurrency developers) can be gathered together, and each of them can play rightly in their own position. It means that you have to create rules that are there. Like the stock market, it strictly manages the listing of stocks (cryptocurrency) and imposes disclosure obligations on the foundation.

Now, each exchange is listed as’because of knowing’, and the announcement after listing is’at will’ by the Foundation. The government has virtually neglected the market while adhering to the principle that there is no relevant law and cryptocurrency is not intervening because it is not a currency or financial product.

An official in the industry who requested anonymity said, “Even if you lose money from investment in a well-structured playground like the stock market, it is entirely the responsibility of the investor, not the government. “It’s a problem.” Kim Hyung-joong, head of the Korea University Cryptocurrency Research Center, said, “The revised Specific Financial Information Transaction Act, which took effect in March, recognizes cryptocurrency as a’valuable asset’. The government should not try to deny it but accept the purpose of the law.” said. Ho-young Joo, representative of the power of the people, also ordered, “The government and the ruling party are unable to fight over the cryptocurrency issue, so we must hurry to prepare a system for cryptocurrency.”

Reporter Hwang Jung-il, Intern reporter Yoon Hye-in and Oh Yu-jin [email protected]


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