Crypto exchanges should pick cryptos with better returns; Upbit CEO
The cryptocurrency industry is prospering and the liquidity is rising with more institutional investments. New cryptocurrencies and associated blockchain technologies are instituted every day with ICOs raising funds more than a million. With the market rife with cryptocurrencies, investors are at a loss when it comes to choosing the right one with profitable returns. Lee Sir-goo, CEO of Dunamu, the company which runs the crypto exchange Upbit, is of the opinion that crypto exchanges should single out cryptocurrencies that can provide investors with best investment opportunities.
“There are more than 20,000 crypto coins existing around the world today. It’s one way to list any coin as long as a listing fee is paid. But I believe the role of a crypto exchange is to screen for and pick out which is a good blockchain business and token, with aims to help users find the best investment opportunities,” said Lee Sir-goo, according to a report. “Stock exchanges like the Kosdaq and Nasdaq all have strict guidelines to determine which company stocks they handle, to protect investors. The same goes for cryptocurrency exchanges,” he added.
Crypto exchanges are increasingly being eyed by regulatory authorities for issues pertaining to money laundering, market manipulation etc. Upbit is currently facing allegations of fraud and money laundering and is under investigation. The CEO expressed his regrets over the entire industry facing the consequences of violations by certain exchanges. He also conveyed that crypto exchanges affected the liquidity of the market because they promote trading of cryptocurrencies in the broader market.
Upbit revealed that the company had plans to invest $88 million in the blockchain industry over the next three years to bolster the blockchain ecosystem. “Blockchain is still a new industry, and there are so many new players and products being released every day. We plan to continue investing in this sector, as investments are essential to helping the blockchain business ecosystem grow,” Lee said.
Upbit already holds investments in Kodebox, a blockchain startup with expertise in the gaming industry and also in RootOneSoft, an e-wallet system for cryptocurrencies. They have also invested in a blockchain tech startup, Ozys which has built a decentralized crypto exchange.
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