According to South Korean officials: there is speculation with Bitcoin and Ethereum, in the middle of the ICO Boom.
The growing gains made by cryptocurrencies such as Bitcoin and Ethereum in recent times are based on speculation rather than investment, according to South Korean government officials. This is a statement that moves to reflection and that users can see as a threat that looms over the ecosystem.
Therefore, there is some concern that in a meeting on Sunday, June 18, government agencies and financial regulators in South Korea discussed the rise in cryptocurrency prices. The local bitcoin industry remains unregulated, although government authorities have spoken of the introduction of regulations since this year, this has been being discussed since the end of 2016.
According to the Business Korea regional publication, officials who make up the financial authorities have pointed out that market speculation increases the value of cryptocurrencies, rather than interest and buying by investors. In addition, they also point to companies offering tokens through ICO (initial coin offerings), which have proven to be hugely successful crowdfunding models powered by cryptocurrencies.
An unidentified official quoted by an information medium said the following. “The recent rise in cryptocurrency prices has taken on a speculative aspect. It is clear speculation. In particular, it is not useful and completely indifferent to assess the value of an initial offering of currencies (ICO) emitted by a new currency, so there may be an unreasonable profit. ” This moves to an investigation by the authorities of the financial system of this sovereign nation.
There are examples as mentioned below. The Ethereum-based prediction market Thats Gnosis is a notable example of a successful ICO, raising more than $ 12 million in less than 10 minutes on a $ 300 million project in April this year. Gnosis was crowned or surpassed by the Aragon platform solution business management platform, raising $ 25 million in less than 15 minutes in May. In late May, Onegram launched a $ 500 million ICO for a gold-backed digital currency. The money supply, so far, has raised just over 1.5 million dollars.
Earlier this month, the IOTA IOT token had a record launch in Bitfinex and won or took a total market value of $ 1.5 billion on its first trading day. At the time of this publication, the total market cap stands at just over $ 1.1 billion.
So Sunday’s meeting between the authorities comes at a time when South Korea is positioned among the world’s largest bitcoin markets, often climbing more than 10% of the bitcoin traded daily. Growing appetite for bitcoin comes at a 10% premium at home, with bitcoin being traded at $ 250 more than the USD-based markets. That is to say that the user who wants to pay a premium over, that is an unequivocal sign that you are speculating with the digital currency.
In short, the market for digital currencies or cryptocurrencies does not escape the voracious appetite of speculators, there is the danger of creating a bubble around bitcoin and other digital currencies. New ads are expected.
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