On 8 January 2018, the cryptocurrency’s global marketplace was entirely unbalanced. The digital currencies’ prices have suffered enormously, as well as users. The main digital variables went through a significant decline. But, why did this happen?
The reason why prices dropped
Well, it seems that the famous platform Coinmarketcap made something wrong. There was an error, which was felt in the drop of prices and the fury of the Korean Government. The problem was the removal of some important data about South Korea’s transactions from the platform.
Significant cryptocurrency transactions from South Korea have been eliminated by the platform Coinmarketcap. The consequences disturbed, of course, South Korea. Among the coins that have undergone a significant decline are Bitcoin, Ripple, Litecoin and Ethereum.
The consequences of the error
The consequences of this error have been felt in the South Korean economy’s strategies. The government has thus become more cautious about cryptocurrencies and will take appropriate actions, perhaps negative for some users. They are preparing for making the use of digital coins illegal on their territory.
Chaos – was the word that characterized the best the consequences of this error. Thirty-one cryptocurrencies have suffered a devaluation, including the most powerful ones: Bitcoin and Ethereum. To understand why we are saying this: on January 8, 2018, the value of the Ripple coin decreased by 26%, Bitcoin Cash by 18% and Litecoin by 12%.
To solve the problem and the wave created around the Coinmarketcap platform, a representative delegate appealed to The Wall Street Journal that published the original news via mail. They argued that the error created was because of the enormous price differences between the Korean market and the rest of the existing markets.
Monday, 8 January, 2018, the platform Coinmarketcap published on their official Twitter page the following message “This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”
The lack of digital transaction’s data realized by a strong country in the crypto world, such as South Korea, has created a huge imbalance on the global marketplace. We should just hope that everything will come back. If we assume coin prices will soon be balancing, you should take the advantage you have now and purchase cryptocurrencies while prices are (still) lower.