Cryptocoin: Clever Scammer Takes Advantage on Bithumb
CRYPTOCOIN – A Twitter user reported that someone is making a clever scam on Bithumb, a South Korean cryptocurrency exchange.
The exchange offered a 120% payback of trading fees every day to one billion won ($899,490) limitation. This offer has been running since August 25. Bithumb’s trading fees are equivalent to 0.15% of the trade value. Hence, using this promotion deal, a user can acquire 0.18 percent of the trade. A user can acquire 0.36% unless a user wants to trade with oneself.
This is found possible through ‘wash trading’ which is illegal in several places. This practice involves a single or colluding party making artificial activity in a market by buying and selling the same stock to itself.
“To collect the full KRW 1 billion rebates a wash trader must thus trade KRW 278 billion. That is USD 250 million in daily fake volume,” Twitter user Alex Krüger said.
Basically, someone is taking advantage of the special offer to make around a daily earning of $90,000.
In the world of cryptocurrency, the fake volume is a big concern. One trader has found out the possibility of an overstatement in OKEx’s numbers to 92.9%. Consequently, a price-tracking website has recently removed the $50,000 minimum in the daily volumes.
Bithumb is known as South Korea’s second most popular cryptocurrency exchange. According to coinmarketcap.com, the South Korean cryptocurrency exchange traded at $391 million.
Since August 30, the exchange has started to accept new customers. The operation had stopped last July 31 due to its failure to renew a contract with Nonghyup Bank based on reports.
As stated in a local law, the South Korean cryptocurrency exchanges are mandated to hold bank accounts. However, Nonghyup expressed security concerns after the theft incident of $30.1 million in cryptocurrency from Bithumb last June. Nonetheless, the exchange agreed to repay the victims and passed June’s tax audit.
BTCKorea, a publicly traded company, owns Bithumb. Earlier this year, the company reported that there was an increase in its profits by a factor of 171 over last year. Despite the hack, the company said that it profited millions of dollars.
Bithumb recently opened its new office in Gangnam and has plans to open another branch in London.
Cryptocoin: Former Deutsche bank FX dealer joins FXcoin
Former Deutsche Bank FX Dealer Yasuo Matsuda has transferred to FXcoin as a senior cryptocurrency strategist, according to reports.
Matsuda is not the first alumnus from Deutsche Bank to join FXcoin. In fact, Tomoo Onishi is the founder of FXCoin. Onishi acted as the Managing Director of the bank’s FX division for almost 13 years.
