South Korean Watchdog Investigates Coinone After MOVE Token Price Soars 46,000x: Report

South Korea’s Financial Supervisory Service (FSS) has launched an investigation into the Coinone cryptocurrency exchange following an extreme price fluctuation of the Movement (MOVE) token. The investigation centers on the sudden and dramatic rise in MOVE’s price, which reportedly surged by a staggering 46,000 times before quickly plummeting, raising concerns about potential unfair trading practices.

According to a report by the Korean news outlet MTN, the FSS is examining whether any unfair trades occurred during this price surge. On December 9, the Movement Network Foundation, the organization behind the MOVE token, announced its token generation event. MOVE is built on the Movement blockchain, which was created using the Move programming language originally developed for Facebook’s Diem project (formerly known as Libra). Following the announcement, the price of MOVE on Coinone spiked from 215.3 won (approximately $0.15) to 998,500 won ($697) within minutes, only to quickly drop back down to 5,300 won shortly afterward.

In response to the event, the FSS is investigating whether Coinone adhered to proper procedures during the token listing process and is reviewing whether any unusual or manipulative trading activity took place. The investigation also extends to the timing of MOVE’s listing on Coinone, as it began trading there before being listed on other major Korean exchanges like Upbit and Bithumb. This has raised further questions about the exchange’s handling of the listing process, with regulators scrutinizing the integrity of the trading environment.

The outcome of this investigation could have significant implications for the exchange, as well as for the broader cryptocurrency market in South Korea, particularly in regard to the transparency and fairness of token listings and trading practices.