amana makes 300 additional cryptocurrencies available to app users

Dunamu Restructures Leadership at Its Blockchain Research ArmDunamu, the operator of South Korea’s largest cryptocurrency exchange Upbit, has implemented leadership changes at its blockchain research arm, Lambda256. That’s according to a report by local media outlet Decenter.Photo by Lea L on UnsplashCo-leadership structureStarting this month, Lambda256 welcomes a co-leadership structure, with tech maven Chung Ui-chung and financial specialist Park Yong-shin stepping in as co-CEOs. Each CEO holds independent signing authority. Chung previously held the role of Chief Technology Officer (CTO) at internet messaging giant Kakao, while Park Yong-shin boasts a distinguished career in public administration and finance, having passed the civil service examination and later steering the helm at Heungkuk Investment Trust Management, currently known as Heungkuk Asset Management.Tech expert and gov’t affairs specialistThe reshuffle follows the departure of former CEO Park Jae-hyun, who resigned last month. Shedding light on the division of roles, a Lambda256 official mentioned that Chung will spearhead practical endeavors, whereas Park Yong-shin will liaise with government sectors. Industry analysts perceive this strategic move as Lambda256’s intensified drive to hone its technological edge and navigate the evolving government regulations surrounding security tokens and associated blockchain ventures.Dunamu, holding a dominant 60.6% ownership in Lambda256, established the company in 2018, entrusting the leadership to Park Jae-hyun, a former employee of SK Telecom and Samsung Electronics. The subsequent year saw Lambda256 evolve into a subsidiary, rolling out blockchain platforms like Luniverse. However, financial challenges loomed, with the firm recording net losses of KRW 2.1 billion ($1.6 million) in 2020, KRW 3.7 billion in 2021, and KRW 46.5 billion in 2022.

Research Finds Over 90% of Korean Cryptos Prone to Pump-and-Dump SchemesThe Korea Institute of Finance (KIF) has released a report revealing that 91.3% of South Korean-issued cryptocurrencies, known as “kimchi coins,” are prone to pump-and-dump (P&D) schemes. These schemes involve intentionally spreading false information on social media platforms to manipulate token prices. This is done with the intention of selling the tokens at artificially inflated prices.Photo by Maxim Hopman on UnsplashP&D prevalenceThese manipulative practices were frequently observed during the rapid growth of the cryptocurrency market from 2020 to 2022. Previous research papers indicate that P&D schemes commonly occur on multiple crypto exchanges and typically unfold within a time frame of 10 minutes. It has been observed that cryptocurrencies with lower liquidity and smaller market capitalization are particularly vulnerable to becoming prime targets for these schemes.Korean market and global marketThe Korean cryptocurrency market stands out with its significant number of cryptocurrencies listed on a single exchange, including kimchi coins. This distinction becomes evident when comparing it to the global market. In the Korean market, the top 10 global cryptocurrencies, ranked by their market capitalization, account for 59% of the total market share. Meanwhile, in the global market, they represent 84.9%. This contrast indicates that the Korean market has a larger proportion of alternative coins, also known as altcoins, which are more susceptible to pump-and-dump schemes and other manipulative activities.According to a survey conducted by the Financial Services Commission in the second half of 2022, there were a total of 625 listed coins (excluding duplicate listings), with 389 (62.24%) of them being listed on a single exchange. Among these single-exchange listed cryptos, 223 were kimchi coins, which is equivalent to 57%.OHLCV data analysisIn this KIF paper, research analyst Baik Yeon-ju delved into abnormal price patterns within the Korean cryptocurrency market. She analyzed the hourly Open-High-Low-Close-Volume (OHLCV) data of kimchi coins in October 2021. The study revealed that out of a total of 16,560 hourly price and volume observations, approximately 4.7% exhibited characteristics consistent with P&D schemes. Baik noted that 91.3% (21 of the 23) observed kimchi coins witnessed such movements.Legislative effortsMeanwhile, it is encouraging that the South Korean National Assembly passed the Virtual Asset User Protection Bill during its plenary session on June 30. This legislation, set to go effective in July next year, aims to provide protection for customers’ assets in the virtual asset space. The act not only establishes regulations to combat unfair trading practices but also enforces penalties for non-compliance.Call for further measuresHowever, Baik suggested that policies should be further strengthened to enhance investor protection within the crypto market. In order to achieve this, she proposed the implementation of a monitoring system for virtual asset service operators (VASPs) and the allocation of inspection and investigation personnel, as well as technical resources. It is also necessary to address potential conflicts that may arise with the Act on Real Name Financial Transactions and Confidentiality, particularly if the data required from VASPs falls under the classification of financial transaction information and personal information.Furthermore, considering the lack of transparency surrounding many altcoins regarding their projects and exchange listings, Baik suggests that the upcoming second virtual asset bill should tackle this issue by regulating the issuance and disclosure of these cryptocurrencies. Additionally, she highlighted the importance of conducting research based on empirical data to detect abnormal transactions. This approach enables the recognition of existing issues and the acquisition of concrete evidence, which serves as a credible basis for policymakers to enact relevant legislation.

Bitget Report Finds Gen Z Dominates Crypto Copy TradingA recent report by Bitget, the Seychelles-headquartered crypto exchange, sheds light on the growing trend of copy trading among younger investors, particularly Gen Z.Photo by rc.xyz NFT gallery on Unsplash44% under 25The report, released on Thursday, reveals that an impressive 44% of all copy traders on the platform are under the age of 25, indicating a strong inclination among this generation towards this type of investment and trading strategy.Copy trading, or social trading, involves emulating the trading activities of established investors. Bitget’s findings indicate that the younger demographic is more receptive to this approach, with individuals aged 25 to 35 constituting just under one-third of all copy traders. Comparatively, individuals aged 35 to 55 represented 17% of copy traders, while those over 55 constituted a mere 7%.Reliance on influencersInterestingly, this trend aligns with Generation Z’s penchant for seeking advice from social media influencers. Bitget’s report highlights that Gen Z’s tendency to turn to these influencers for investment decisions could be a driving factor behind their affinity for copy trading.A survey by Forbes Advisor in January found that approximately 80% of both Gen Z and millennials rely on financial advice from social media platforms. Notably, platforms like YouTube, Reddit, and TikTok have gained their trust, with half of the respondents claiming to have profited from advice received.The report also reinforces crypto’s status as the preferred investment choice among Gen Z. A joint study by the CFA Institute and the Financial Industry Regulatory Authority (FINRA) Foundation in May revealed that crypto was the most popular investment option for Gen Z in the United States, a striking 44% of Gen Z investors initiated their investment journey with cryptocurrencies, surpassing the 35% of millennials who did the same.Geographical differencesThe trend extends beyond the US, with 43% of British and 35% of Canadian Gen Z investors indicating crypto as their inaugural investment.Geographically, Bitget’s report showcases intriguing patterns among its copy-trading user base. While nearly a third of users hail from Western Europe, almost half originate from East or Southeast Asia. This distribution highlights the global reach of the platform and the appeal of copy trading across diverse regions.Of note, despite constituting only 1% of Bitget’s global copy traders, a remarkable 62% of African users expressed interest in copy trading. This proportion stands as the highest among all regions surveyed, reflecting a growing appetite for innovative investment methods on the African continent.Bitget’s report underscores the evolving landscape of investment practices, with Generation Z at the forefront of embracing new approaches like copy trading. It also builds on prior initiatives and research undertaken by the firm. In May Bitget launched a corporate social responsibility (CSR) project titled “Blockchain4Youth.” That initiative revealed that Bitget understands that the younger generation is where the greatest opportunity for mass market adoption lies for crypto and Web3.As the influence of social media on financial decisions continues to rise, the crypto industry may see further shifts in investment patterns and strategies among different demographic groups.