Seoul prosecutors charge eight suspects linked to crypto price manipulation

Asian Market Surge for XRP Amid Broader Market ImplicationsXRP, the cryptocurrency and native token used by real time gross settlement system, Ripple, has seen renewed activity in recent weeks in terms of trading volume. That trading volume appears to be more pronounced in Asian markets such as South Korea.©Pexels/RODNAE ProductionsThe XRP token has traded up 22% over the course of the past seven days, with a current unit price of $0.54. Trading volume has surged on South Korean exchanges such as Bithumb UpBit and Korbit where volume spiked 18%, 37% and 50% respectively over the past 24 hours. This trading activity is irregular as ordinarily the trading volume of Bitcoin and ether would account for the vast bulk of trading on the three leading Korean exchanges.Speculative interestXRP has under-performed in recent years and at the heart of its difficulties has been a multi-year legal battle with the Securities and Exchange Commission (SEC) in the United States. In its complaint, the SEC has claimed that XRP is an unregistered security. Speculation in recent weeks suggests that this highly litigated battle may be drawing to a conclusion. Many commentators have suggested that either a deal will be struck or the court could soon decide to rule on the matter.During the 2017 bull market, the token reached the heady heights of a $3.40 unit price. That’s a target that the cryptocurrency has never been able to reach ever since. During the last bull market, it rose to around $1.76 for a short time in April 2021. There’s little doubt but the regulatory cloud hanging over it has suppressed the price. Much depends on the outcome of this lawsuit, not just for XRP but for crypto as a whole.Another notion driving speculative interest is the idea that the Commodity Futures Trading Commission (CFTC) may classify XRP as a commodity. That line of thought is more recent and follows the CFTC classifying a number of cryptocurrencies as commodities in its lawsuit against global crypto exchange Binance. In follow up comments earlier this week, CFTC Chair Roistin Behnam reiterated the claim.The very fact that the CFTC has made this claim is significant in terms of the case being pursued by the SEC, potentially weakening the SECs case. Lawyers for Ripple have made the court aware of the CFTCs claims.Crypto moving forwardCrypto traders in South Korea have been notorious in the past for pursuing speculative trends within the industry with the Kimchi Premium on Bitcoin back in the day as a stand out example. Whether speculative or not, the outcome for XRP, Ripple and the broader cryptocurrency space relative to the cryptocurrency’s regulatory status will be significant.A positive result will not just be a fillip for XRP, Ripple and Asian and other crypto traders who have speculated on such an outcome. It will also serve to provide a level of regulatory protection for all other crypto projects within the United States. A negative outcome to the lawsuit will not be ideal for XRP, Ripple and US-based crypto projects. However, Ripple CEO Brad Garlinghouse has said in the past that if innovation is driven overseas, Ripple will focus on developing its product overseas.In an interview this week Ripple President Monica Long suggested that over and above the lawsuit, crypto innovation is generally being pushed outside of the United States. Long cites Asia as taking the lead on “thoughtful crypto policy”. On that basis, it’s likely that one way or another crypto moves forward and maybe South Korean speculators will be proven right regardless of the outcome of the XRP..

Ripple Labs, the American technology company that developed and supports XRP and the XRP Ledger (XRPL), has partnered with Japan’s Web3 Salon initiative, while in a separate development, the company is also funding crypto-related academic research within the Asia-Pacific (APAC) region.Photo by Moose Photos on PexelsDriving Web3 adoption in JapanIn a statement published to its website on June 9, the company outlined that it has partnered with Japan’s Web3 Salon project, a Web3 initiative with the objective of educating businesses and developers, nurturing blockchain startups and driving Web3 adoption through the provision of startup incubator programs and running hackathons and workshops.One of Japan’s most active Web3 projects, Web3 Salon has the backing of the Japan External Trade Organization (JETRO). The project has also collaborated with a range of Japanese Web3 startups, Asia Web3 Alliance Japan (AWAJ), institutional investors and venture capital firms, as well as a number of key industry stakeholders. Grant fundingAs part of its involvement in this collaboration, Ripple will provide grant funding of up to $200,000 to Japanese startups who have developed their projects on XRPL. Ripple’s grant funding forms part of its broader initiative to finance XRPL-related startups in Japan and Korea. Earlier this month, it confirmed that it had established the XRPL Japan and Korea Fund for this purpose.  At a broader level still, Ripple said that this latest funding commitment also falls under its one billion XRP commitment. Back in 2022 the company committed one billion XRP to advance XRPL ecosystem projects. Christina Chan, Senior Director of Developer Growth at Ripple, commented on the development, stating:“Ripple is proud to collaborate with Web3 Salon to unlock new opportunities in Japan’s thriving startup ecosystem. Together, we hope to fuel innovation and support the next generation of leaders.” Supporting APAC university researchIn a separate blog post published to its website on June 10, Ripple outlined that it was committing $5 million in funding within the APAC region as part of its University Blockchain Research Initiative (UBRI). The funding will cover blockchain-related academic research projects in Japan, South Korea, Singapore, Taiwan and Australia. $1.1 million has been allocated to South Korea’s Korea University in funding that will be released over a six-year period. The funding builds on another relationship that had already been established with Yonsei University via the UBRI in 2024. Equally, Japan’s Kyoto University had engaged with the UBRI last year. That support is now being renewed while funding is also being allocated to the University of Tokyo. The two institutions will be able to avail to funding in excess of $1.5 million.Other APAC region educational institutions to benefit include the National Kaohsiung University of Science and Technology (NKUST) in Taiwan, the National University of Singapore (NUS) and Nanyang Technological University (NTU) in Singapore and the Australian National University (ANU) in Australia.’An epicenter of digital finance’Ripple called APAC “an epicenter of digital finance.” Expanding further on that assertion, it stated that the region has shown “an appetite for experimentation and boasting thriving communities for builders.” Consequently, it views the APAC region as a leader in payment technologies and digital asset adoption.

Experts Offer Insights into Bitcoin ETFs, Stablecoins, and On-Chain Data AnalysisDuring Korea Investment Week 2023, hosted by local newspaper Korea Economic Daily, experts in the field of virtual assets gathered at the Korea Exchange (KRX) PR Hall on Thursday. They came together to share their expertise on the cryptocurrency market and discuss various investment strategies.Key topics covered at the event ranged from the global outlook for virtual asset exchange-traded funds (ETFs) to the prospects of the US approving Bitcoin spot ETFs. Strategies based on on-chain data analysis were also on the agenda.Photo by Kanchanara on UnsplashThe potential of Bitcoin spot ETFsOne of the notable speakers, Lee Tae-yong, the Chief Global Strategy Officer at Wavebridge, a cryptocurrency market index provider, argued that the potential approval of Bitcoin spot ETFs could attract global investors to the market. He opined that this could subsequently improve market liquidity and contribute to stabilizing the Bitcoin market.Lee has made a prediction that Bitcoin spot ETFs will likely receive approval in the United States. He cited examples from Europe, Australia, and Brazil, where such financial products are already being managed effectively. He also suggested that the US Securities and Exchange Commission (SEC) would likely take note of this global trend and may find it challenging to go against it.Experts believe that among the various Bitcoin spot ETF applications submitted to the US SEC, Grayscale Investments’ proposal to convert the Grayscale Bitcoin Trust (GBTC) into an ETF stands the best chance of receiving approval first. Data from The Block indicates that the Grayscale Bitcoin Trust manages crypto assets totaling $16.13 billion as of September 7.Lee predicts that the approval of Bitcoin spot ETFs will serve as a pivotal milestone for the cryptocurrency market, potentially triggering a significant uptick in the price of Bitcoin. To support this assertion, Lee pointed to the historical precedent set by the introduction of a gold-backed ETF in 2004. Since its inception, the gold-backed ETF has swelled in value to exceed $45 billion. Importantly, gold does not have a fixed supply, yet the availability of an ETF mechanism boosted its value considerably. Lee argues that the impact on Bitcoin could be even more pronounced given its fixed supply cap.There was also a projection that virtual assets are set to play a crucial role in expanding the size of the ETF market, potentially more than doubling it. Lee pointed out that conventional ETFs typically charge fees of around 0.15%, whereas virtual asset ETFs tend to charge over 1%. This underscores that virtual assets are seen as a new revenue source among asset managers.Stablecoins and regulationsSome viewed that stablecoins would emerge as a focal point among the innovations taking place within the cryptocurrency industry. Kim Yong-beom, the CEO of Hashed Open Research and a former vice minister of the Ministry of Strategy and Finance, noted that Asia has been actively advancing regulations related to stablecoins. Stablecoins are a category of cryptocurrencies that are pegged to traditional fiat currencies like the US dollar.Highlighting the efforts of many countries to develop a comprehensive regulatory framework for cryptocurrencies, Kim noted the importance of establishing regulations that accommodate stablecoins. In his view, the introduction of such regulations will amplify the impact of stablecoins within the market.Kim mentioned that Asian countries are leading in blockchain research and digital competitiveness. He said that Asian universities, particularly those in China, are among the world’s best in producing blockchain research papers and offering related lectures. Kim also pointed out that while the leadership in the blockchain industry has shifted towards Asia, South Korea is now emerging as a prominent hub for virtual assets in the region. He emphasized the need for South Korea to position itself as a more influential nation in this context.On-chain data and investmentDuring the event, a cryptocurrency investment strategy based on on-chain data was also presented. On-chain data refers to publicly accessible information about transactions conducted on a blockchain network. This data can be utilized as an investment indicator that is not available within the traditional financial sector.Ju Ki-young, the CEO of on-chain analytics resource CryptoQuant, underlined that virtual asset investors are particularly interested in tracking who is selling which tokens at any given moment. He stressed that examining on-chain data, such as deposit and withdrawal information from major cryptocurrency exchanges, can be a valuable tool for risk mitigation.