[Today] When a public notice turns a movie festival into a Netflix acquisition deal
[Today] 2020.06.01 The June stock market started strong. On June 1, the Kospi rose 1.75 percent from the previous close to 2065.08 points. The Kosdaq jumped even higher to close at 735.72 points, up 3.09 percent increase from the previous close. This was because U.S. President Donald Trump’s response to Beijing’s decision of imposing a controversial security law on Hong Kong wasn’t as fierce as expected. His comments on revoking special trade privileges for Hong Kong didn't suggest an imminent move, but rather a request to relevant government offices to look into the matter. For the U.S. president, it would have been hard to completely neglect the potential hardship for U.S. companies. But as things are not over yet, the world is still keeping a sharp eye on the U.S.-China trade dispute. #Crypto: Goldman Sacks slams bitcoin Meanwhile in the foreign crypto community, Goldman Sachs’ May 27 conference call is still a subject of heated debate. The general opinion of such communities is that Goldman Sachs is critical of the crytpcpurrency market because it failed to grab leadership in the game. "We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” Goldman Sacks said, adding that bitcoin lacks legitimacy as an asset class. But we ask: isn’t that the basic principle for every price formation in a market? Whether it’s stock or real estate, there needs to be a buyer that calls for a higher price for that transaction to happen. #Insight: Are public notices being misused to boost coin prices? One of the biggest events in the cypto scene last week was a notice from MovieBloc on Xangle, a public announcement platform for cryto-related companies. On May 25, a notice came up on Xangle that said MovieBloc would make a “big announcement” on May 27. These letters were enough to boost investor expectations to a point that it started creating rumors like a possible partnership with CJ, Disney, or an acquisition by Netflix. MovieBloc’s price soared from 1.8 won to 3.6 won after the May 25 notice. But the “big announcement” disclosed on May 27 was about an online movie festival the company would put on with Kaywon High School of Arts. Prices plummeted again but the fall stopped at the 2 won level, which the crypto coin couldn’t reach before the announcement. There have been instances in the past where notices forecasting a public announcement to come in a few days boosted crypto asset prices. In similar instances, the real announcement didn’t turn out to be as ground breaking, leading to falling prices. This raises doubts on the possibility of Xangle’s team being a part of the scheme with crypto companies; to take advantage of the notice system and use it to boost prices. “We take zero commission for uploading notices and public announcements on the platform,” a Xangle source said. “Xangle’s profits have nothing to do with risen coin prices.” On the intention of the notice board for upcoming public announcements, the staffer explained it was a feature devised to prevent a few investors from taking advantage of information obtained ahead of others. But the way these notices are used exactly contradicts that purpose. The premise of a healthy market is the establishment of a fair public announcement system.