The Financial Supervisory Service (FSS) of South Korea has begun investigating cryptocurrency exchange Coinone over the sharp price fluctuations of the Movement $MOVE token shortly after its listing.
Investigation into unusual trading
According to information from the FSS on December 12, the agency's Digital Asset Investigation Division is collecting information from Coinone to clarify the cause of the unusual price fluctuations of MOVE.
The main goal of the investigation is to determine whether unfair trading occurred. On December 9, the price of MOVE increased by 46,000 times, from the starting price of 215.3 KRW to 99,8500 KRW at 20:41. However, in just 16 minutes, the price dropped to 5,300 KRW at 20:57. FSS will examine whether any unusual transactions occurred during this process, as well as whether Coinone's internal control system was functioning properly to detect unusual transactions.
The investigation will also scrutinize the MOVE listing process. Coinone supported MOVE token trading at 20:00 on December 9, earlier than other major exchanges such as Upbit and Bithumb. This coincided with the start of MOVE distribution, resulting in a lack of liquidity in the market. FSS will examine why Coinone decided to list under such conditions.
The sharp price fluctuations of MOVE not only highlight the potential risks in digital asset trading, but also raise questions about the control and supervision processes of exchanges. FSS's investigation is expected to clarify the cause and ensure transparency in trading activities.
Investigation into unusual trading
According to information from the FSS on December 12, the agency's Digital Asset Investigation Division is collecting information from Coinone to clarify the cause of the unusual price fluctuations of MOVE.
The main goal of the investigation is to determine whether unfair trading occurred. On December 9, the price of MOVE increased by 46,000 times, from the starting price of 215.3 KRW to 99,8500 KRW at 20:41. However, in just 16 minutes, the price dropped to 5,300 KRW at 20:57. FSS will examine whether any unusual transactions occurred during this process, as well as whether Coinone's internal control system was functioning properly to detect unusual transactions.
The investigation will also scrutinize the MOVE listing process. Coinone supported MOVE token trading at 20:00 on December 9, earlier than other major exchanges such as Upbit and Bithumb. This coincided with the start of MOVE distribution, resulting in a lack of liquidity in the market. FSS will examine why Coinone decided to list under such conditions.
The sharp price fluctuations of MOVE not only highlight the potential risks in digital asset trading, but also raise questions about the control and supervision processes of exchanges. FSS's investigation is expected to clarify the cause and ensure transparency in trading activities.
