Bithumb being one of South Korea’s largest cryptocurrency exchanges had plans of launching their own coins through a corporation in Singapore earlier. It is the second most valued cryptocurrency exchange that is known for its meticulous verification process when it comes to cryptocurrency trades.
After the announcement of the ban on ICOs in the late September 2017, South Korea’s Financial Services Commission [FSC] reported increased risks towards financial scams. Ever since then, the local financial authorities have been trying to enable strict Anti-Money Laundering systems to avoid such scams.
Following up in April, few South Korean Exchanges are planning to open branches abroad. Another popular crypto-exchange in South Korean namely Coinone has already announced their plans to launch an exchange in Indonesia by June.
However, earlier this week Bithumb announced their plans of listing a new blockchain platform called Popchain [PCH] on Bithumb-Pro on May 17th but was distributed to private investors two days prior to the date. The aftermath of the airdrop of Popchain was followed by severe criticisms over suspicious listing without any prior information.
The global community was made to question the developmental team’s integrity when it came to holding 91% of the supply in two wallets, owned by two accounts. Presently Popchain is worth around $2 million and is solely owned by two individuals.
A major part of the cryptocurrency communities within South Korea criticized Popchain for the team’s plagiarism of the whitepaper and also copying the source code of other Cryptocurrencies. Given that it has only been two weeks since its beginning, the sudden initiation of the airdrop to this platform has brought about major concerns amongst investors of a possible Ponzi scheme, which is an investment fraud that pays existing investors with the funds collected by new investors without any actual profit earned. So, the whole structure collapses when the cash outflow surpasses the cash inflow.
Cryptocurrency investors told Hankyung, the Korean Economic Daily that:
“The listing of Popchain is a fraud-like operation and that Bithumb is prematurely integrating Popchain.”
The investors are more disappointed with the very fact that no other tokens like Kyber Network, EOS, or Storm got through the listing on Bithumb in merely two weeks. As per reports, less than 18 wallets had 100% Popchain tokens. The company’s stock value has now decreased rapidly over the controversy on PCH. Bithumb has now withdrawn its plan to list Popchain in such a short-term and wait till it is unsegregated by major cryptocurrency exchanges.
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