The Closing of the Korean Crypto Exchange, Kon…

The Closing of the Korean Crypto Exchange, Kon… post thumbnail image

Cryptocurrency market cut for the month of September.

SUMMARY

  • Cryptocurrency cap fell below $2 billion at the end of September, down 9% per month.

  • With the upgrade, Cardano can compete with the Ethereum network and the Binance Smart Chain in the DeFi market. However, the volume of blocked funds based on Ethereum is down 5%, BSC – almost 20% in the month.

  • Coinbase plans to issue $1.5 billion in bonds and launch cryptocurrency futures trading in the United States. Binance is leaving the Singapore market due to regulatory pressure, and jobs in South Africa are also in question.

  • Around 35 cryptocurrency exchanges will close in South Korea due to new regulatory requirements, another 28 will stop trading in won. The major players have complied with the requirements and continue to work, they are responsible for most of the crypto turnover in the country.

  • Trading volume in non-exchangeable tokens decreased in September. At the same time, two exchanges, OKEx and FTX, launched the NFT market with different functions and terms of use.

Market dynamics

During the month (08.24-24.09) the cryptocurrency capitalization fell 9% and totaled $1.8 billion, according to CoinMarketCap. In September, a hard fork occurred on the third largest cryptocurrency network by capitalization, Cardano. The update allows the creation of blockchain-based smart contracts. This upgrade makes Cardano a potential competitor to Ethereum and Binance Smart Chain in the decentralized financial market.

Cryptocurrency market cap. Source: CoinMarketCap

Decentralized finance

Ethereum-based funds blocked on DeFi fell 5% over the month (August 30-27.09) to $84 billion, according to DeFi Pulse. The cost of the second cryptocurrency has also fallen roughly during the period.

Amount of Ethereum-based funds blocked on DeFi. Source: Defipulse

Funds blocked in the market for decentralized finance on the basis of the BSC decreased significantly (nearly 20%) and amounted to $23 billion, according to Defistation. The Binance Coin token alone fell in price by more than a quarter during the same period.

DeFi Locked Fund Based on Binance Smart Chain. Source: Defistation

Hackers continue to discover vulnerabilities in the DeFi protocol. In September, $12.5 million worth of bitcoins were stolen from the pBTC cross-chain bridge from the pNetwork platform. The developer claims to have updated the code and removed the exploit. Additionally, the DeFi platform VEE Finance lost $35 million as a result of the attack. Against this background, the volatility of the project token has increased significantly.

VEE token price. Source: CoinMarketCap

Litecoin, one of the top 20 cryptocurrencies in terms of capitalization, launched the DeFi platform. It supports the creation of NFTs, smart contracts, and cryptocurrencies. Developers promise users “sustainability” and low costs. However, fake news about the partnership between Litecoin and retailer Walmart affected the price much more significantly, cryptocurrency quotes are currently increasing by a third.

LTC token price. Source: CoinMarketCap

One of the largest decentralized exchanges, Uniswap, is SEC audited. This is due to the fact that the DeFi project falls under securities law and must comply with its requirements, according to the head of the commission, Gary Gensler. Total trading volume on the DEX for the unfinished September was $83 billion, according to Dune Analytics.

Crypto currency exchange

Coinbase plans to issue $1.5 billion in bonds In May, the company has raised funds in a similar fashion. This time the money will be used for the development, investment, and acquisition of other companies. Additionally, Coinbase plans to launch cryptocurrency futures trading in the US. To do this, the exchange needs to get permission from two bodies, the NFA and the CFTC. For the incomplete September, total trading volume in BTC futures totaled $1.45 trillion, according to The Block.

Bitcoin futures trading volume. Source: Blok

Bitfinex has launched a platform for hosting security tokens for SMEs. Bitfinex Securities is based at the Astana International Financial Center (AIFC) in Kazakhstan. Residents of the US, Canada, Switzerland and some other countries will not be able to purchase tokenized securities on the platform. Currently, the volume of assets issued on Bitfinex Securities cannot exceed $15 million.

Trading volume on crypto exchanges by month. Source: Cryptocompare

Due to the new restrictions, 35 crypto exchanges could close in South Korea, and 28 could stop trading in won. Before September 24, exchanges are required to register with the Korea Financial Intelligence Unit (KFIU) or cease operations. They are also required to cooperate with banks to synchronize customer information. Otherwise, the exchange will not be able to support trading in won. The four largest organizations, Upbit, Bithumb, Coinone and Korbit, have met the requirements. They account for 97% of cryptocurrency trading in South Korea.

Non-exchangeable tokens

NFT token trading volume decreased in September compared to August, according to The Block.

NFT trading volume per week. Source: Blok

Binance has long held a leading position in terms of trading volume among cryptocurrency exchanges, according to CryptoCompare. At the same time, it is subject to regulatory pressures in different country jurisdictions – in September it became known that Binance would cease doing business in Singapore. Pairs with local national currencies will no longer be traded on the platform, and crypto exchange applications will disappear from the Play Market and App Store. Also, South Africa’s financial regulator announced that Binance has no rights to provide financial services in the country.

However, the two cryptocurrency exchanges launched the NFT market independently of each other. OKEx creates products within the DeFi Hub ecosystem. In the marketplace, you can buy, sell, exchange and issue tokens. Initially, the release of NFT will be on the OEC (OKExChain) and Ethereum blockchains. Sales on the secondary market in a commission-free platform. However, users still pay to process transactions on the Ethereum network.

Also, cryptocurrency exchange FTX launched a service for the generation of non-exchangeable tokens. The commission for using the platform will be 5% each from the buyer and seller. The token issued will support the ETH/SOL cross-chain bridge. There are also plans to allow users to upload third-party NFTs to the marketplace.

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