In a lot of cases, the individual prices per currency or token were nowhere near what most peopleÂ could fetch forÂ them on the exchanges. Nearly everything is in the red, except for a few outliers. There was no solution other than to exclude the South Korean exchange prices for the foreseeable future. Coinmarketcap Makes a Much-Needed Change InÂ the past few months, all cryptocurrencies have seen their market capitalizations go up quite spectacularly. For those unaware, one Bitcoin is valued at over US$23,000 in South KoreaÂ right now. Although that is only normal, it alsoÂ made the markets look a lot healthier than they really were. Â The use of Korean exchanges is subject to very strict rules and requirements, which makesÂ them unattractive to Western investors. No one can take advantage of these arbitrage opportunities either, and thus the prices will not be driven down in the near future. The trading volume numbers will still count, though. That was mainly due to South Korean exchangesÂ including Bithumb, Korbit, Coinone, and a few others. More specifically, things are not looking all that great on the charts less than 24 hours after this change was introduced. As a result, the platform is now no longer includingÂ South Korean prices in its averages for all currencies.
His passion for finance and technology made him one of the world s leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector. Since no one can take advantage of the South Korean premium anyway, this change doesn’t matter all that much when looking at the bigger picture. As a result, all cryptocurrencies which were propped up byÂ South Korean exchanges have taken a big hit in terms of their prices and market caps. The big question is how all this will affect cryptocurrencies moving forward. Shares 66 Most cryptocurrency enthusiasts are well awareÂ that the prices on CoinMarketCap. Although there will always be some discrepanciesÂ in all trading markets, the average prices should now be much closer to theÂ actual values at which one could buy or sell these crypto-assets. In South Korea, that premium is now close to 50%, which is absolutely unacceptable. All of these trading platforms artificially inflated prices and market caps, as they were trading at a very steep premium over the rest of the world cryptocurrencies by market cap. Moreover, the overall cryptocurrency market cap saw nearly US$50 billion removed from its total, which is quite a lot of money. It is not the first time we’ve seen Asian trading platforms trade major cryptocurrencies at much higher values compared to the rest of the world, mind you. At that time, Chinese traders were also paying a premium for every coin, although it rarely exceeded 10% cryptocurrencies by market cap. About The Author JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium.
This is mainly becauseÂ the siteÂ has continued to factor South Korean pricesÂ intoÂ its global averages. As a result, we saw Bitcoin’s price reported at over US$18,000 for quite some time, even though the Western world only came close to that level on one occasion. That same Bitcoin, when exchanged for US dollars, will get you US$15,774 at best.BridgeCoin.. Right now, the same Bitcoin price is listed on CoinMarketCap at a value of US$15,464, which is slightly more realistic. This change was to be expected, though,Â and CoinMarketCap nowÂ displays the “proper” averages for all currencies again. About a year ago, ChineseÂ exchanges dominated the trading volume for Bitcoin and most altcoins. Things can only get better from here on out; that much is evident. It does represent a massive 5% “decline” compared to 24 hours ago, but that’s just due to South Korean prices being excluded on CMC. It is evident this discrepancyÂ across exchanges has been a problem for quite some time now. .Kin.Quantstamp. ICON.