The South Korean Crypto Exchange named Prixbit has had experienced a tough year in 2019 till now and that has really pushed it to close down and terminate all of the Cryptocurrency-related services officially as per the announcement made by the website. As the fact goes, Prixbit is not the only South Korean crypto exchange that is trying to overcome the hardships that have come their way. It is said that about 200 Korean crypto exchanges are on the verge of shutting down that consists of almost 97% of the space captured by the exchanges.
Image Source: www.financemagnates.com
The news related to the shut-down of the South Korean most reputed crypto exchange, Prixbit has been entitled as ‘Prixbitend‘ and was first revealed on the website on the 9th of August 2019, that cleared that the exchange’s platform was ceasing the operations owing to the negative external and as well as the internal influences along with the management difficulties that however could not be overcome hampering to the extent of impossibility of the normal operation. Not much information about Prixbit is made available and it didn’t seem much active even whilst in existence. As per the Foundico that tracks ICOs, the beta was launched back in February of 2019, while the formal opening was set for September and the crypto exchange was to issue two tokens namely, GRX and the PRX.
The crypto exchange platform has full-fledged ceased off its services and has begun the process of refunding to all of its clients as per the promise made to them in the context of returning all the deposits for the people who had provided the customer information in order to allow for return. it has been reported that most of the refunds that involve exchanges’ native tokens, GRX and PRX that have already been completed. Prixbit has also addressed other tokens that were still on deposit in addition to its native tokens. The crypto exchange has also encouraged its users to register for a refund as soon as possible in the bid to reclaim their tokens. Prixbit has also revealed that it had done its best and worked hard in order to deal with the menace of hacking, voice phishing, and money laundering. All of these menaces of the crypto ecosystem are known by the mass. Nevertheless, Prixbit has failed to overcome these issues that lead to its untimely shutdown.
Image Source: thenews.asia
BusinessKorea has published a report on the 19th of August that links the failure of the crypto exchange with the financial difficulties and to its investor’s concerns about losing their holdings in the crypto exchange. Going by the fact, Prixbit is the latest crypto exchange to bear the impact of the aforesaid difficulties and also that it is not the only crypto exchange of South Korea to do so. The report has as well claimed that an estimation of 200 Korean exchanges are in danger of closing down that makes up for about nearly 97% of the sector.
In spite of being a prominent crypto trading market, a significant amount of the crypto exchanges in South Korea are struggling to continue their operations. According to the report, the bifurcation of the local market in the country has got a lot to do with the crisis. In the country, there are only four major digital asset exchanges that can connect to local banks for fiat transactions, which are Bithumb, Coinone, Korbit, and Upbit. The rest, on the other hand, do not have access to the banking ecosystem and hence they cannot offer the fiat-based services to their customers. This also results in low trading volume in those exchanges, thus making it hard for them to sustain the operations. This is the reason behind such a huge proportion of crypto exchanges in the country are on the edge of bankruptcy. And just 5-6 Cryptocurrency exchanges from such a vibrant crypto market has managed to make it to the 100 in the world.
As per the report presented by Fn News, the low trading volumes of the local crypto exchanges, stricter domestic Cryptocurrency exchange market conditions whereby the investors cannot make or withdraw deposits in the Korean currency at the Korean exchanges and the competition provided by overseas crypto exchange platforms, are the reasons behind downfall of the local exchanges in the country.
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