Market Drops, UPbit Raided, Mt. Gox Dumps 8000 BTC and Facebook ($FB) May Launch Cryptocurrency
The crypto market plummeted by over $50 billion USD in the past 24 hours, with the market cap dropping from around $440 billion USD this time yesterday to about $390 billion USD at press time according to CoinMarketCap. Bitcoin (BTC) declined by about 8 percent while altcoins like Ethereum (ETH), Ripple (XRP) and Bitcoin Cash (BCH) fell roughly 10, 13, 14 percent respectively.
The drop in price is being partially attributed to the reported police raid on the headquarters of UPbit, South Korea's largest crypto exchange. According to a loosely translated report in CoinDesk Korea, UPbit is suspected of fraud, selling currency it doesn't have and that authorities are currently investigating the company's books.
"UPbit is being charged (fraudulent) as if it were holding the cipher money to the investors who are using UPbit without holding the actual cipher currency.
The South Korean prosecutor's office said, "We have secured hard disks and accounting books through confiscation. Analysis is expected to take days.""
Another major factor in the market drop is recent evidence that, as before, a Mt. Gox trustee has sold off around $8000 BTC, in four transactions of roughly 2000 BTC, which at press time is about $70 million USD. A CCN report criticized the move, arguing that the trustee could have had less of an effect on the market by selling directly to large-scale investors.
"Similar to how most institutional traders and retail investors purchase and sell large batches of cryptocurrencies, the Mt. Gox trustee could use the over-the-counter (OTC) market and directly deal with large-scale investors that are willing to purchase thousands of bitcoins.
Instead, the Mt. Gox trustee has opted to sell its funds on cryptocurrency exchanges, creating a domino effect across all major exchanges and leading the cryptocurrency market to drop by large margins."
According to a report in Cheddar, Facebook may be considering the creation of its own cryptocurrency.
"Facebook started studying blockchain almost a year ago, when a member of its corporate development team, Morgan Beller, began looking at how the social platform could use the emerging technology."
Although sources in the piece attest the seriousness of the project, they remain secretive for the time being.
""They are very serious about it," said one of the people, who asked not to be identified discussing unannounced plans."
""Like many other companies Facebook is exploring ways to leverage the power of blockchain technology," a Facebook spokesperson told Cheddar after this story was first published on Friday. "This new small team will be exploring many different applications. We don't have anything further to share.""
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