Today, on August 19, it became known that over 97% of all South Korean cryptocurrency exchanges are on the verge of bankruptcy. According to CoinSpot, Coinnest became the first bankrupted exchange in South Korea. Other "low liquidity" exchanges will follow.
South Korean Exchanges
According to the information, more than 97% of crypto exchanges from South Korea are already operating at a loss. Thus, more than 70 exchange platforms may be on the verge of bankruptcy. By the way, one exchange has already collapsed and was closed due to low liquidityLiquidity
– is a term that means the ability to sell any financial assets (below or above the market price). The term “liquidity” in Latin means “liquid”, “flowing”.Details. Coinnest is a South Korean crypto exchange that has closed its business due to low liquidity and a lack of profit earlier this year.
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According to statistics, only 5 South Korean crypto exchanges are in the top 100 world exchanges in terms of volume of tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details. CoinSpot does not provide accurate data to support the deplorable state of affairs in the South Korean crypto industry. Experts suggest that low liquidity is linked to the country's financial regulators.
97% of South Korean crypto exchanges are on the verge of bankruptcy. We remind that the renowned Korean bank Shinhan, one of the oldest and largest banks in South Korea, intends to develop a blockchain-based system to provide increased security for its customers' personal data.
Editor: Yulia Krasnaya