In South Korea, the cryptocurrency community is raising concerns about the need for stronger reporting standards and a more rigorous regulatory framework. This comes as multiple virtual assets encounter delistings and circulation discrepancies, casting doubt on the integrity of the market.
Delistings and Inconsistencies Shake Investor Confidence
Recently, altcoins such as Galaxia (GXA) and Enjin (ENJ) have faced delistings and reported inconsistencies in their circulation volumes. These developments have sparked controversy and undermined investor confidence in the market.
“Enjin Coin was delisted from the Upbit fiat market in September due to a significant increase in tokens released,” explains an industry insider. “The Enjin Coin mainnet integrated the original Ethereum-based tokens with a new Polkadot-based chain, resulting in the issuance of up to 2 billion new tokens.” This sudden increase in token supply raised concerns about the token’s inflation rate and stability.
On the other hand, Galaxia (GXA) faced a similar controversy when it was discovered that the actual number of tokens in circulation exceeded the initial announcement by the foundation. A security breach compounded the issue, with 380 million GXA tokens stolen. As a result, the actual distribution amount of GXA tokens exceeded the announced amount.
The Galaxia Foundation responded to the incident, clarifying that the exceeded amount was paid as operating agency fees and would be deducted as operating expenses in the future.
Strengthened Scrutiny and Urgency for Regulation
The cryptocurrency community is now calling for enhanced oversight and stricter regulation to prevent such incidents from recurring. The importance of strengthened scrutiny has been highlighted by the cryptocurrency data service company Xangle. They emphasize the need to introduce clear standards for calculating distribution volume and a comprehensive disclosure system to monitor them.
Furthermore, the ongoing trial of Lee Sang-jun, CEO of Bithumb Holdings, in Seoul has added to the urgency for greater scrutiny in South Korea’s cryptocurrency sphere. Lee is facing charges of allegedly soliciting listings of unnamed altcoins on the Bithumb exchange. This case has further fueled concerns over transparency and regulation in the industry.
To restore and maintain investor confidence, it is crucial for the South Korean cryptocurrency community to establish stronger reporting standards and a more rigorous regulatory framework. By doing so, they can ensure the integrity and stability of the market, while protecting the interests of investors.
