CoinMarketCap eliminates South Korean stock exchanges and Ripple market

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CoinMarketCap eliminates South Korean stock exchanges and Ripple market drops $ 20 billion

The very popular cryptocurrency price tracker, CoinMarketCap, eliminated several South Korean stock exchanges from its listings on January 8, which caused a fall in the general market that particularly affected the alternative currency Ripple (XRP).

The eliminated bags include Bithumb, the second largest stock exchange in the world in terms of trading volume, along with Coinone and Korbit.

CoinMarketCap, which uses data from multiple global exchanges to produce average prices for cryptocurrencies, tweeted Monday about its decision to eliminate stock markets, saying it was due to "extreme divergence in prices from the rest of the world and the limited opportunity for arbitrage.

The Ripple effect
The CoinMarketCap decision was followed by a dramatic setback in Ripple's record uptrend. The day CoinMarketCap eliminated South Korean stock markets, Ripple saw an immediate loss of more than $ 20 billion in market capitalization and an almost 30 percent drop on January 8. Ethereum (ETH) outperformed the alternative currency as the second largest cryptocurrency by market capitalization.

Ripple, in particular, is traded on South Korean stock exchanges at a very high volume, a fact that reportedly helped bring Ripple to second place in the crypton market last week.

Prices on South Korean stock exchanges also exceed one dollar more than on most other global exchanges, which is part of what led CoinMarketCap to exclude them

Rumors that Coinbase would add the alternative currency, followed by confirmation on January 4 that it would not, caused a spike and a drop in Ripple's price in the first days of January. However, the price drop after the CoinMarketCap decision on January 8 had a more immediate and drastic effect, with a drop of more than 16 percent in the space of 6 minutes.

As a result of the move, XRP currently costs about $ 0.60 at CoinMarketCap compared to similar services like Live Coin Watch, which still includes the main Korean stock exchanges.

Users on Twitter complained that CoinMarketCap's failure to immediately alert users to its decision caused a sellout panic that in turn aggravated the market's decline.

Coinmarketcap's decision to exclude Korean prices from the XRP price showed that the price seemed to fall, which probably triggered some panic sales. Look closely at the data and do not be fooled.

On January 7, local media in South Korea reported that authorities will inspect six of the country's major banks to investigate money laundering through cryptocurrencies.