Market Shows Very Slight Recovery, 12 out of 12 Exchanges Approved by #Korean #Blockchain Association, South Korean Legislators Commit to Aiding Blockchain Growth

Crypto Corner - July 13, 2018

Market Shows Very Slight Recovery, 12 out of 12 Exchanges Approved by Korean Blockchain Association, South Korean Legislators Commit to Aiding Blockchain Growth and Study Reveals 80% of ICOs Last Year Were 'Scams'

Going into the weekend the crypto market is looking a bit healthier than yesterday, with the total market cap sitting at $250 billion USD. While this is a long way from the January 7 peak of $835 billion USD, it';s still a $5 billion USD improvement over yesterday. Bitcoin (BTC) is trading at $6271 at press time and most of the top 100 coins have shown a modest recovery since the most recent drop. All this data is from CoinMarketCap.

The Korea Herald reports that the Korean Blockchain Association (KBA), a self-regulatory body in the South Korean crypto space, on Wednesday approved 12 exchanges for meeting "minimum requirements" after security inspections. The inspections were launched in May on 14 of the 23 exchanges that comprise the KBA, but two of them - Sunny7 and Komid - withdrew. Notably, the inspections did not include a hacking simulation, despite high profile hacks of Bithumb and Coinrail in June. The report in the Herald says the KBA';s head, Jhun Ha-jin, conceded that security flaws were found among the 12 exchanges but did not elaborate on them in a subsequent press conference. The Korea Times quotes Jhun on the 12 exchanges meeting the KBA';s standards:

"The result indicates the 12 exchanges satisfy the minimum requirement for their operations. It is like a driver's license. It is hard to tell whether they are good drivers or not."

South Korean legislators met today at the 4th Vice Ministerial Meeting on 'Growth through Innovation', where they resolved to promote growth and investment in new technology such as blockchain. A press release from the meeting indicates lawmakers'; intention to foster growth in blockchain technology through favourable taxation policies and supporting investment.

A recent study entitled "CRYPTOASSET MARKET COVERAGE INITIATION: NETWORK CREATION" conducted by ICO advisory firm Satis Group, has revealed that more than 80 percent of ICOs last year were scams.

  • Over 70% of ICO funding (by $ volume) to-date went to higher quality projects, although over 80% of projects (by # share) were identified as scams.

However, the report states that of the $12 billion USD raised for ICOs, only $1.3 billion (11 percent) went to identified scams.

"Although ~1/10th of all ICO fundraising went to Identified Scams, the vast majority of the $1.3B was from just three projects, which were all relatively old school frauds by no means unique to ICOs (Pincoin ($660M), Arisebank ($600M), and Savedroid (~$50M))."

Sam Mowers, Investorideas

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