Bitcoin Forum

CMC just tumbled the whole market with one move by excluding Korean exchanges from price calculations (self.CryptoCurrency)

submitted 8 hours ago * by dzigizordRedditor for 3 months.

Few hours ago Coin Market Cap removed Korean exchanges from their coin price calculations and being that all coins are about 30% pricier over there, it instantly tanked the price on CMC graphs. From what I see this is happening now :

CMC removed Korean exchanges
Prices/graphs instantly tanked (but in practice not relevant to people outside Korea who dont trade there anyhow)
Large number of people did not recognize what actually happened and that there were not moves/selling on their western exchanges
Those same people are now dumping large amount of coins trying to "cut loses" because of the false impression that coin is crashing.
Random stuff happening
My opinion is that this should have been handled much better by CMC. At least put a banner saying "WE HAVE EXCLUDED KOREAN EXCHANGES BECAUSE OF THIS OR THAT AND IT WILL HAVE SUCH INFLUENCE ON CALCULATIONS". I just hope they do not put back and remove those exchanges at random point in time. Any thoughts?

Courtesy : reddit.com

New Year Special! Altcoins 15% off.

Was busy buying the dip, but yea that was a "D" move on their part.
Be nicer if those guys try not to cause a panic, we currently playing with weak hands.

Yeah It was a golden opportunity for people who missed boats while it slowing at this moment they can  jumped in to the relevant boats.

A lot of factors is assessed whenever a matket crashed or the price dropped. It is an imperstive that we show or understand the reasons why. That way we do not over react and do not wallow in panic selling which does not hely us or cruptocurrency.

It just shows how fragile the crypto markets are. One single site alters it's price algorithm by excluding a price source then the markets already went on full panic mode, effectively slightly dipping the total market cap. There sure is lots of dumb money in the market.

that is what happens when you over-pump a bunch of shitcoins and a lot of newbies start running to pour their money (that they took out of bitcoin) into those shitcoins. they get pumped big and then they will tank big also.
you can not avoid the dumping that comes after these types of pumps. the Korean exchange thing is just an excuse that initiated it. it is more like the last straw that broke the camel's back.

January is usually the month for the dips! And I love it during this month for it gives me a lot of opportunity to put something in my bag and HODL tight. I don't care if it's bearish because I always love it when its low. My only mindset is to hoard those coins and see what is it going to give me after few months. Hopefully, they wouldn't pop at all!

Do you mean that this is all related to the Korean deal? But South Korea has nothing to do with it.

This is why it is said that Crypto market is highly volatile, one news enough to change the game.  Yeah it seems many non vigilant,uneducated traders in the market. they are too sensitive for one single news. matured traders can use it their own benefits buying coins at the dip.

It's unethical for CMC to make a move like that with no pre-announcement. They can easily be purposefully manipulating the market and taking advantage of it (knowing full well ahead of time what their move was going to do to the price short term).

If I add you my personal experience many people waiting for XVG wraith protocol to be released on 31st of Dec, before the new year, But as they promised they couldn't release it, then many people blamed them saying that XVG is a scam. and suddenly price dropped in a high rate. many people left the project. every one was upset, not faith in XVG. Then I also felt like I was scammed, and should sell XVG soon. no hopes. but again I thought I must listen to XVG too. they apologized about the mistake but somehow release the protocol perfectly taking enough time. Then I started to believe in them. I didn't listen to other sellers. Finally they release wraith protocol, now I know XVG will rise soon. my point is , at that time I fought against that situation. Every one was upset , panic. angry. it affects me too. but I managed the emotions, I think finally I won. 

If the move by coinmarketcap was truly was caused the recent dip of crypto market price, then I agree with those saying that there are many immature traders who sell off easily. But then again, it's a big win for smart traders as they tend to buy the dip instead.

Some good points. so you think increase of latest market cap will reduce back up to previous level?

[[January is usually the month for the dips!]]

Is there any reason for January for the dips usually?

You got it right mate, I've seen all over the social media that there are too many newbies that are encouraged with what they are buying and even they are already stumbling, they keep on saying "HODL, it will moon soon". LOL I know what it feels to be in that situation but I will not ride their pump and dump sequence. I don't buy on CMC's reasoning that it's just because of it.

The very recent one is not even near to being called a market crash. Got a feeling there will be a big real crash this year by mid year.

Even last year Market crashed during june/july right? Is it usually happen every year?

We had a crash from 19k to 10-11k recently, I think that it was not a small crash at all...

Bitcoin drops below $15,000 as regulation, demand concerns linger.
Bitcoin slumped, dragging down smaller rivals such as ether and litecoin, as concerns that regulators will tighten their grip on the market weigh on the world's largest cryptocurrency. Regulators in China and South Korea are increasing oversight on cryptocurrency trading and mining, while the US Securities and Exchange Commission late last year started cracking down on some digital token sales, known as ICOs.

When you consider these approaches on Crypto and BTC from governments, how do you see the future of Crypto and BTC, i feel insecure sometimes. will it affect badly ?

New's year holidays have already been passed a few days ago, more than a week and a half ago, lmao.

But you are right, i take advantage of this recently dump and i bought a lot of altcoins in order to make more money, and i was right about that.

I bought some Dogecoin, and i already made more than 40% of what i bought, the same with ethereum and elixir, with the last one, i already made 75%.

Unethical? Hardly. CMC can do whatever they want. They don't control the market or the prices in the market; this just goes to show how volatile the market really is. It's the crypto users that panicked and dumped the market.

If CMC were to give advance notice, that would have been enough for them to become labeled as market manipulators, and they'd lose much more credibility as a reliable source for coin info.

And this is called decentralized world lol one website influenced the whole crypto market, can you guys imagine how ridiculous it sounds  :)

Same thing happens in forex market either, Markets depends on fear and greedy. News can make your greedy and scare... matured traders know how to manage those emotions. but not all. that's what happens here.

They also have their reasons, I think it may be done for the sake of the overall situation.

The decentralization aims of bitcoin in particular and cryptocurrencies in general has nothing to do with the emotional response of newbies who have jumped with their Christmas money on the shit-coin bandwagon.

This happens all the time. It is necessary to shake the weak hands who are in this for quick bucks. If you really care about the future then just buy some red, hold and keep getting yourself informed of the technology. Money is the by-product, not the primary one.

there is nothing (un)ethical about what a website chooses to show or not show. they can say we don't like poloniex so we no longer add their information to our website. and if you don't like that then either use another website similar to coinmarketcap.com or start your own website.

and the reason for de-listing them is most probably because of the fake volume and 0 fee trading that some of them have. similar to when they excluded Chinese exchanges.

and none of this has anything to do with the altcoin market crash. it was a dump after a pump that caused the crash.

You new people need to learn that what you call "market crash" is nothing but another opportunity to buy alts cheap. In other words, another usual day in crypto economy. You ll see many and many of these so I suggest you adapt to this and learn how to take advantage of it.

A big crash is definitely feasible. It's alt season right now, while bitcoin remains in a range and is struggling to break out.

Let's not forget that last year Ethereum and Zcash were both over 0.1 BTC - and even with Ethereum on a tear and an ATH, it's not even got back up there yet. Last year alts were immense for the first 6 months of the year, then bitcoin took over - maybe we'll see similar again this year....it's looking a bit like it so far, isn't it?

What do you mean by "overall situation ? sudden rapid expansion of the crypto market due to new comers?

Very true. at early stage when market collapses I worried, but now i know on the other hand it opens plenty of opportunities for us which we couldn't catch earlier, It may take time to offer you the rewards but for sure your high rank rewards are waiting for you, for instance when market crashed last year all altcoins price did fall down to the bottom. So people could have bought many valuable coins at low rate a lot. people who bought by that time now they are millionaires.

Hey I like your view. because I am very careful about what you said. even middle of the last year Altcoin market crashed and BTC started to rise absorbing all altcoins. If we collect BTC as much as possible, we would have more BTC, then we could have bought plenty of altcoins, but we didnt know that gonna happen at that stage, but now we have experience. as you said , will history repeat. then we can get ready for the party..what do you think?

I though CMC know the happen today then maybe CMC didnt do it for foul play.. but to help the exchanges hide the today flash crash.
to hopefully prevent other countries from panic selling as least as possible
although it didnt work as planned

Bitcoin will start its rally so that whales react all panic news and dump bitcoin to low to see all-time high very soon

It just shows how fragile the crypto markets are. One single site alters it's price algorithm by excluding a price source then the markets already went on full panic mode, effectively slightly dipping the total market cap. There sure is lots of dumb money in the market

I was also wondering why all started to plummet..Then found the news about Korean exchanges issue on Internet.. Because of this my holdings are in lose..

It is the Korean market. A lot of people from China were investing using the Korean exchanges. I dont get it! Japan has it legal then what is Korea's problem? This probably shows that people are averse to change and they dont want power in people's hands! It is going to be this way for a couple of weeks as the shutdown of exchanges will be followed by people panic selling all over. This will continue till a new friendly country is found and the setup becomes stronger there. Till then I suppose we will watch the repeat of the China incident :) :)

Reason behind sudden market crash..

High transaction fees and people have been waiting for the development team to put a upper limit
on the maximum Tx fees but they have been sitting on there hands.

20,000 BTC miners are not needed because too little cream is left to spread around so those that
won't process a transaction and put a mere 250 bytes on data into the chain for $1.50 are all
WELCOME BY ME TO LEAVE  

Hope a new friendly country initiates and clears the current issues adapting required things to increase bitcoin value. As said, the value will start increasing once south Korean govt finishes banning all the exchanges and rest remains exchanging using blockchain and other exchange. The circulation then would probably help to increase the value.

This is the present reason..news and it is not fake . it is in all news channels.



   Bitcoin tumbles on talk of South Korea preparing a crypto trading ban 
2 Hours Ago | 02:59
South Korea's justice minister said on Thursday that a bill is being prepared to ban all cryptocurrency trading in the country.

That news is a major development for the cryptocurrency space, as South Korea is one of the biggest markets for major coins like bitcoin and ethereum.

According to industry website CryptoCompare, more than 10 percent of ethereum is traded against the South Korean won — the second largest concentration in terms of fiat currencies behind the dollar. Meanwhile, 5 percent of all bitcoin are traded against the won.

"There are great concerns regarding virtual currencies and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges," Park Sang-ki said at a press conference, according to the ministry's press office.

Bitcoin tumbled more than 12 percent following Park's remarks, before recovering. It was down 1.6 percent on the Coinbase exchange.

Ethereum tanked on the news and remained 11 percent lower on Coinbase.

Park added that he couldn't disclose more specific details about proposed shutdown of cryptocurrency trading exchanges in the country, adding that various government agencies would work together to implement several measures.

Later in the day, South Korea's presidential office said that any potential bill "is not a measure that has been finalized," according to News1, a South Korean news site.

Reuters further reported that a press official said the proposed ban on cryptocurrency trading was announced after "enough discussion" with other government agencies including the nation's finance ministry and financial regulators.

The news wire later added that once a bill is drafted, legislation for an outright ban of virtual coin trading will require a majority vote of the total 297 members of the National Assembly, a process that could take months — or even years.

Cryptocurrency trading in South Korea is very speculative and similar to gambling. Major cryptocurrencies like bitcoin and ethereum are priced significantly higher in the country's exchanges than elsewhere in the world. For example, bitcoin traded at $17,169.65 per token at local exchange Bithumb, which was a 31 percent premium to the CoinDesk average price.

 Here's why the mystery founder of bitcoin matters That difference in price is called a "kimchi premium" by many traders.

In fact, earlier this week, industry data provider CoinMarketCap tweeted that it would exclude some South Korean exchanges in price calculations due to the "extreme divergence in prices from the rest of the world" and for "limited arbitrage opportunity." The exchanges that were removed from the price calculation included Bithumb, Korbit and Coinone.

Last month, the South Korean Financial Services Commission said it was prohibiting cryptocurrency exchanges from issuing new trading accounts. If an exchange does allow new accounts, the government has the ability to take action to either stop trading or shut the exchange down, the commission said in a statement.

The commission added that, since much of the cryptocurrency trading was being done anonymously, users must use their real names.

The government also indicated it would closely monitor banks and would "swiftly" step in to limit fund flows into cryptocurrencies if necessary.

Bitcoin exposed stocks in South Korea took a major hit after the announcement. Shares of Omnitel, which has a bitcoin remittance business, crashed 30 percent, Vidente shares tumbled 29.96 percent, Digital Optics fell 13.7 percent and KPM Tech was down 5.48 percent.

That news from the justice minister comes after the country's largest cryptocurrency exchanges were raided by police and tax agencies this week for alleged tax evasion, people familiar with the investigation told Reuters.

—CNBC's Chery Kang, Evelyn Cheng and Reuters contributed to this report.