Cryptocurrency newsletter: South Korean crypto projects eye overseas markets

Summary:

  • More and more crypto-based projects are looking at overseas markets
  • Can a new PBoC’s digital currency be actually named in such a way?
  • Ethereum breaks below the important support

Reaping benefits beyond South Korea

Over the course of the past week major cryptocurrencies stayed little changed, on balance, sellers were slightly prevailing. As a result, Bitcoin is trading still somewhat above the $10k mark, a psychological barrier for many crypto traders. In terms of interesting revelations concerning the crypto world let us begin with a story from South Korea which does not seem to be beneficial of the domestic crypto market. Namely, industry experts based in the Asian country have recently noticed a jump in crypto and blockchain-based projects which seek to list their products on platforms localized out of South Korea. They even single out some reasons which in their view could stand behind such a trend. Among them one may find stricter domestic crypto exchange market regulations or low transaction volume compounding liquidity conditions. The latter is so serious that as many as 200 smaller exchanges may be in danger of bankruptcy, according to the pundits. 

Crypto or not crypto

We informed you about the idea of a PBoC-backed cryptocurrency last week. However, things have evolved ever since and now it turns out this digital currency cannot be actually named in such a way. It’s all about the fact that the PBoC’s cryptocurrency is to be powered by a two-tier operating system making it not fully decentralized. And this is the point because decentralization is the prime feature of cryptocurrencies. As PBoC Deputy Director Mu Changchun said “This two-tier system is suitable for our national conditions. It can use existing resources to support and develop commercial banks and smoothly promote digital currency.” Until then, we have yet to know the details of the development and the release date, albeit Mu voiced his belief that the PBoC’s idea could replace cash and other digital currencies. 

Ethereum breaks below the support

Looking at the Ethereum price chart one may notice that the cryptocurrency broke below the key support line nearby $200. It does not bode well for buyers as the price may experience a prolonged decline heading toward $160 or below this level - this area is also supported by the 78.6% retracement of the latest leg higher. Source: xStation5

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