Whoah. That's was a pretty unexpected drop in total market cap. After several weeks of growth, the market dropped around 15%. Yes, that's a lot. Although, we really do not care about these movements. The drop is most probably caused by the news that Upbit is being investigated. Upbit is suspected of fraud for allegedly selling cryptocurrency to customers that it does not actually hold. Of course, it is a bad thing. But it does not change the added value of blockchain.
As we all know, the latest months clarified how positive companies, VCś, governments, and even banks are towards cryptocurrencies. This news will not change that. If Upbit really committed fraud it is a good thing that they are being investigated to protect customers. These events show us how important regulations will be in the future.
Next week Consensus will start. Projects, investment firms, banks and even governments attending this great event to talk about the future. We expect a lot of good news and industry announcements next week which really can turn the market sentiment, again. This year, Consensus is bigger than ever, it will get a lot of media attention that can trigger new investors into the market.
For now, just hold your positions. Do you have USD(t) left? It can be a great moment to accumulate projects with good fundamentals. Take a look at our watchlist.
Prosecutors in South Korea have reportedly raided the largest cryptocurrency exchange in the country, UPbit.
According to CoinDesk Korea, investigators from the Prosecutors' Office of the southern district of Seoul, the country's capital, searched the head office of the exchange in the Gangnam-gu district on May 10-11.
UPbit is suspected of fraud for allegedly selling cryptocurrency to customers that it does not actually hold, according to the report. "We have secured hard disks and accounting books through confiscation. Analysis is expected to take days," the Prosecutors' Office stated.
When asked for comment by CoinDesk Korea, an UPbit representative said, "At this time, I can not answer anything about this seizure."
However, the exchange's support website confirms the investigation in a note posted today and states that its services are still operational, saying:
"UPbit is currently under investigation by the prosecution, and we are working diligently. UPbit services such as all transactions and withdrawals are operating normally. Your assets are kept securely in your account, so you can rest assured that you can use UPbit services."
The news comes as authorities in the country have been investigating cryptocurrency exchanges amid regulatory tightening in the country.
In March, prosecutors reportedly raided the offices of three cryptocurrency exchanges on suspicion of siphoning off funds from customers' accounts. One of the exchanges raided was Coinnest, the fifth largest in Korea at the time. Kim Ikhwan, the firm's founder, and another executive were taken into custody in early April.