Bitcoin, Crypto currency, Blockchain

Unnatural price rise in Bithumb: The Kimchi-Commission

97699521d0cf9dcb7190f20b735eee24 - Unnatural price rise in Bithumb: The Kimchi-Commission


On the South Korean crypto-Exchange Bithumb it is after the Hack increasingly came to pricing irregularities. The courses of some of the crypto currencies were partially increased extremely, and unreasonably, and in some cases even a multiple of the General market price. The South Korean government had tried last of all, to prevent different prices on Korean stock exchanges.

Trader on Bithumb saw last extreme developments, what are the courses came on. Some crypto-currencies were on the South Korean Exchange to be traded at a much higher price than it was outside of the Korean Peninsula. This has been most apparent in the example of the crypto-currency Ethos. Phase of the Token for six times its average traded value was offered. While Ethos was traded last weekend on Binance for just over a US Dollar, the rate on Bithumb at 6.5 dollars.

The Kimchi Commission

For quite some time, there is the Terminus Kinchi Commission (English Kimchi Premium), to describe the particular price of the location to the South Korean Exchanges. The gap between the rates on South Korea’s Exchanges and the rates it is meant for Coinmarketcap, which occurs occasionally.

Particularly prominent is the price difference of almost 30 % while the Bitcoin Explosion in December. While the all-time Bitcoins is high in Coinmarketcap at just over $ 20,000, was traded the Bitcoin for Bithumb phase for more than US $ 25,000. As reasons for the Kimchi Commission, the disproportionate demand for crypto-currencies will be made on the South Korean market.

In the course of the year, the government of South Korea, in collaboration with the Financial Services Commission (FSC) had been working to close the gap again. In fact, the Kinchi-premium disappeared after the Korean Exchanges, until the rates were nearly the global average.

The Bithumb Hack brings the price range again on the image surface

At the end of June, however, the formerly largest South Korean crypto-stock exchange was the victim of a hacker attack. In total, the attackers were able to capture at the time, crypto-currencies to the value of about 30 million US dollars. A little later, you announced that want to the user, indemnify, nevertheless, a not insignificant economic damage was created for the Exchange itself.

In response, Bithumb had temporarily and withdrawals stop. So only the user could put a Deposit on a Bithumb your Trades. The restriction led to no fresh capital was able to flow in the Bithumb market, and the rates are largely disconnected from the global market could develop. In the case of a Surplus of buyers and the simultaneous shrinking of the supply circuit, come about, finally, course, excesses like this.

Whether this effect was ultimately intend by the operators Bithumbs so, it can not be conclusively clarified. A Lock and disbursements of the Exchange, however, instruments in Hand. The Korean government can’t do this like during which your efforts to smooth the troubled waters were wiped out.

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