[JOA] Marine pollution and cryptocurrency
Cage culture--gaduri culture in Korea--refers to an aquaculture production system where fish are held in floating nets. When culture growth is excessive, it could create marine pollution. In the cryptocurrency market, a form of gaduri pumping exists. Gaduri pumping generally happens when the transactions of a certain cryptocurreny distributed in the market gets limited. For instance, if the C blockchain market, on which cryptocurrency A is listed, limits the transactions of cryptocurrency A, which is also listed on the B blockchain market, the gaduri pumping occurs. The gaduri pumping enables cryptocurrency A to be purchased within the C blockchain market, but it can’t be brought in externally. This results in an artificial rise in the price of the cryptocurrency. #Needs institutional agreement to build healthy ecosystem There isn’t yet a direct precedent with regards to the gaduri pumping. But there is a similar case, when cryptoexchange Upbit in 2018 was accused of manipulating its data processing and falsifying orders to inflate the trade volume. In regards to the case, the court said the general intention behind false trading is to attract potential customers by suggesting the easy transactions of cryptocurrency. But Upbit wasn’t registered on CoinMarketCap, an information provider on the cryptocurrency market, until December 2017. This made it difficult for general investors to access information about Upbit. As a result, false trading couldn’t have had an influence on the inflow of members to Upbit. In regards to the argument from the prosecution that an Upbit account placed an order, canceled it and made transactions on a revised price, the court said the transaction periods weren’t short enough to prove the false trading. The court said there isn’t yet legislation on liquidity providers when it comes to cryptocurrency exchanges, and therefore, it is difficult to ban liquidity without considering the situations specifically. This means it’s difficult to clearly reach a verdict, as would be possible in the stock market, due to legislative uncertainties unless cryptocurrency market members experience direct damage. To build a sophisticated and healthy ecosystem and verdicts, forming institutional agreements based on the accumulated data is crucial. Excessive gaduri pumping and policies on cryptocurrency coins hurt investors and the ecosystem, but ironically this has led to the open discussions on how to make the market healthier. It is now time to think of ways to build an appropriate ecosystem.