Upbit lists GOM2, delists Cosmo coin
Cryptocurrency exchange Upbit is at the center of controversy for listing GOM2 in the BTC market. Predecessor GOM has been accused by a Korean weekly magazine of having been part of an equity scandal. GOM once traded at 120 won, and GOM2 is currently being traded at 12 won. Considering that GOM has been hard forked, or updated, into GOM2, the current price is a hundredth of the original cryptocurrency price. #GOM2 at the center of controversy. GOM2, the predecessor of GOM, is a coin suspected of being associated with Lee Hee-jin, an asset manager involved in a financial scam, according to the local press. Lee is a stock analyst, who gained popularity by sharing investment tips on television and social media. He was found guilty for giving his clients false information and selling shares in the over-the-counter (OTC) market at inflated prices. According to reports at the time, Lee was a director of "NeoRocket," the developer of the pet app that issued GOM, but it was Lee Hee-moon, the younger brother of Lee, who led negotiations in the selling of the company. In addition, the local press reported that "Lee Hee-jin, who was behind bars back then, intervened in the sales negotiations, which eventually stopped the company from being sold." At the time when suspicions were raised, GOM was traded on crypto exchanges such as CoinBene and BitSonic. When coin prices rose, it skyrockted to around 120 won per GOM. Its market capitalization was 1.2 trillion won. It is similar to Hyosung (about 1.3 trillion won), which is a Korean conglomerate ranked 136th in terms of market capitalization. #AnimalGo says, we have nothing to do with Lee. Since then, GOM developer NeoRocket changed the company name to "AnimalGo" and pushed for further listing. In March, GOM successor GOM2 was newly listed on Coinone, a crypto exchange. At the same time, the company also announced its position on suspicions that were raised last year on the anti-cryptocurrency disclosure platform. "Lee Hee-jin has no investment in stocks or other assets in AnimalGo. However, Lee Hee-moon, Lee’s younger brother, was a seed investor in the early stages of the company. However, after reports from the local press, he as well withdrew all investments in our company,” said AnimalGo back then. When rumors were raised about Lee Hee-jin’s relationships with Upbit's listing, AnimalGo issued a statement on July 9. "We have nothing to do with Lee Hee-jin. We have explained this over and over not only through public notice but also through our community,” the company said. "The nation’s largest cryptocurrency exchanges, Coinone and Upbit, have gone through detailed investigations into our company. If we hadn't gone through such detailed inspections, we could not have gone public on those two exchanges.” #What were GOM2’s qualifications to be listed on Upbit? Despite Coinone's listing of GOM2 in March, the reason why Upbit's support for GOM2 transactions has become a hot topic is closely related to the recent Cosmo scandal. As Cosmo's cryptocurrency, COSM, was embroiled in various scandals, people turned their eyes to the exchanges that listed the coins. With this as the background, Upbit announced the delisting of COSM from the exchange on July 7. However, controversy is brewing over the exchange again as Upbit decided to list anther coin, which is at the center of controversy, on the BTC market just a day after the COSM controversy. In response, an Upbit official said, "Upbit's overall listing criteria are specified through the 'digital asset listing policy' on the website. We don't provide separate criteria for listing individual coins," and added that the company “has not released separate criteria for listing individual coins and this includes GOM2." "We have nothing to do with the Cosmocoin or the GOM2 controversies. We have never made false statements about the amount of issuance and distribution,” said an official from AnimalGo.