Kyber Network (KNC) and OmiseGo (OMG) have surged by more than 73 percent and 32.5 percent respectively upon the announcement of South Korea’s biggest cryptocurrency exchange Bithumb’s integration.
Earlier this year, Storm, an Ethereum-based ERC20 token project that incentivizes users for completing microtasks such as viewing advertisements on mobile phones or carrying out surveys, increased by more than 100 percent after its listing on Bithumb.
Today, on April 26, decentralized cryptocurrency exchange KNC and Ethereum-based scaling solution for finance OMG recorded massive gains in both volume and price prior to their listings on Bithumb.
The South Korean cryptocurrency exchange is expected to list both tokens at 11 pm GMT+8, approximately six hours later. The 11 pm listing of Bithumb means that the value of the two tokens have surged by more than 100 percent together merely due to the announcement of Bithumb, prior to the actual integration.
Upon the integration of the two tokens, the price of KNC and OMG could either surge even further and record bigger gains or plummet and demonstrate a steep dump. In the case of Storm, the momentum of the token continued throughout several days subsequent to the integration of Bithumb.
The jackpot listing of Bithumb may become a problem for both cryptocurrency investors and the company itself as blockchain projects will become desperate to be list their tokens on the South Korean exchange to experience the “Bithumb pump.” Similar to how Ripple had offered a $100 million deal to Coinbase to list XRP, Bithumb may receive attractive deals to integrate tokens.
Local cryptocurrency exchanges in South Korea including Bithumb and Korbit are known to have rigorous market research and evaluation processes to ensure each token or cryptocurrency they list appeal to the South Korean market. Establishing an orderbook for a particular cryptocurrency or token can be complex and expensive and local exchanges consider the verification process extremely seriously.
According to sources, the listing of Zcash and Qtum on Bithumb took several months of market research and analysis before its development team decided to integrate the two tokens. Hence, the possibility of Bithumb adding tokens based on deceitful deals is low, as engaging in such a deal would leave Bithumb vulnerable to lawsuits and crackdown by local financial authorities for market manipulation.
Yesterday, on April 25, the bitcoin price peaked at $9,700, recording a staggering $900 increase in value from $8,800. However, within the past 24 hours, the market deleted the gains bitcoin recorded on April 25 as the bitcoin price declined back to the $8,800 region rapidly. Sell orders overflowed on major cryptocurrency exchanges and bitcoin continued to fall below key resistance levels.
At this juncture, it is unlikely that the bitcoin price reaches $10,000 by the end of the week or by the end of April. It is possible for the bitcoin price to enter the $10,000 region if it can recover back to $9,500 in the next several days but its volumes would have stay intact.
Click here for a real-time bitcoin price chart.
Last modified: May 20, 2020 8:50 PM UTC