New Report from South Korea Shows Crypto Exchanges Struggle to Stay Afloat Amidst 14 Month Market Correction
If a recent article published by Blockinpress is to be believed, a number of crypto exchanges based in South Korea have been struggling to keep up with the ever changing market conditions that have affected the crypto industry for the past 14 months or so.
To elaborate further on the matter, we can see that since the start of 2018, the global crypto industry has witnessed a steep fall in its overall trade volume. Not only that, except for Bitcoin and Ethereum, nearly all of the other major altcoins in the market have seen a 90 percent decline in their daily trade volume.
Are Mass Layoffs Incoming?
As per the aforementioned report, some of the S.Korea’s largest exchanges (such as Bithumb and Korbit) are currently in talks to lay off at least 10% of their respective workforces. Speaking to the matter, some industry experts have claimed that ever since the start of the crypto winter, trading has been hit significantly and the global consumer interest in alt-currencies has reduced quite dramatically.
It is also worth reporting that most of South Korea's leading exchanges such as Bithumb, UPbit, Korbit, Coinone, and Gopax are outperforming their smaller counterparts by a huge margin— thus making the ongoing situation even worse.
In regards to the matter, the executive of a minor exchange in South Korea recently told a news outlet that the total “crypto trade volume within the nation had reduced by a whopping 90% over the course of the past year or so”.
A Closer Look at the Matter?
Many market experts are of the belief that with the onset of the ongoing crypto winter, the rate at which digital asset exchanges are solving industry-wide problems has slowed down quite exponentially.
This is primarily because the current bearish conditions have caused trading platforms to “generate less revenue and profit” which has indirectly led to the elimination of certain initiatives that were devised as effective cost cutting measures.
Also, on the issue of liquidity, an executive (who chooses to be unnamed) of a major crypto firm was quoted as saying:
“The pace at which exchanges are addressing core problems this year is not as fast as previous years. The sentiment around the crypto sector remained negative when the government of South Korea refused to get involved. Now, the government is putting in efforts to improve investor protection and the structure of the local market,”
In rounding off this article, it is worth noting that earlier this week, the heads of various altcoin-trading platforms came together to form an alliance that would look to crackdown on money laundering related issues within S.Korea.
As per an official statement released earlier this week, the joint AML effort will most likely start to bear fruit in the coming few months— since it will help bolster the fraud detection practices currently employed by platforms such as BitHumb, Upbitand and Corbit.