Just because you're paranoid doesn't mean they're not after you...

Another Korean conspiracy to suppress global crypto prices or just a little bit of confusion with how liquidity works on a crypto exchange?

Devious or naive?

It's tough to judge, but the majority of the crypto community's members, who tend to look at any given governing agency, along with traditional media, with a little more suspicion and doubt than average people, probably already have their minds made up.

It was FUD.

Now, let's back up a little bit here. A few days ago, I posed the question as to whether this UPbit investigation was truly a raid, simply routine inspection, or something in-between. It turns out it was something beside the aforementioned possibilities, being that it was somewhat of a serious investigation, but the basis of the fear and doubt turned out to be unfounded as it was merely a misunderstanding in terms of the way exchanges maintain liquidity with numerous currencies. It's explained here:

"Users of the 30 cryptocurrencies on UPbit that are yet to see independent wallets integrated by the exchange, cannot deposit or withdraw the tokens directly from UPbit and have to exchange the assets to other cryptocurrencies like bitcoin and Ethereum before withdrawing.

The lack of wallet support for dozens of cryptocurrencies led to the investigation and the government accusing UPbit of inflating its balance sheet.

'Since early 2018, UPbit created snapshots of its multi-signature wallets and funds stored within them for auditing purposes. Yoojin accounting firm, a major accounting firm based in Seoul, confirmed that all of the funds on the UPbit platform match the cryptocurrency holdings of UPbit stored in its multi-signature wallets,” reported MoneyToday'" (source).

It looks like, once again, a mountain was made out of a molehill in the media, who leapt on this story like a pack of wild dogs on a raw steak. It made for a great story and stirred up all kinds of excitement and speculation, right before Consensus 2018, where there were bound to be positive stories that could rebound prices, resulting in a tidy profit, at least according to most media surrounding the event.

Of course, we haven't yet seen any kind of significant jump in prices during the Consensus 2018 event in New York (ZCash doesn't count - that was because of Gemini). Which leads me to believe it's not so much about whales and manipulation as it is about media trying to create an exciting story that might gain global traction and attention, generating clicks on websites. All eyes are on the crypto world right now with Consensus happening, so what better time is there to get a good Korean story going that causes a little panic?

Sometimes it pays not to trust negative news and to hold through bad events while assets are shaken loose from those who panic. Maybe it does pay to be paranoid, after all.

*This is not professional trading advice - it's just my opinion!

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source:

https://www.ccn.com/upbit-audit-confirms-south-koreas-biggest-cryptocurrency-exchange-not-at-fault/

image source:

https://ripplenews.tech/2018/03/02/tron-trx-added-s-korean-exchange-upbit/