<Anchor> As
more and more people want to invest in cryptocurrency and the market overheats, recently, companies that create new cryptocurrencies and want to list them are emerging everywhere. Some of those consulting firms even suspect that they are manipulating the market price, and we got a contract to know that.
Reporter Kim Jung-woo's exclusive report will be followed and the story will continue.
<Reporter>
In 2019, Company A issued its own cryptocurrency and listed it on two domestic small and medium-sized exchanges.
In this process, Company A signed a contract with a consulting company to issue and list cryptocurrencies, a former company official said.
[Ex-company official: I get 200 million to 300 million won for consulting work like that for about a month. Dozens of teams are already waiting for you even if you pack your money.] This
is the contract that SBS got at the time.
The contract titled Market Maker, or Market Creation, states that an order is placed through the server of a consulting company, and the fair price, that is, a certain level of price, is maintained.
It is actually a price manipulation act to make the market look stable by artificially reducing the range of price fluctuations while increasing the trading volume.
In fact, Company A's cryptocurrency was listed on a small and medium-sized exchange for 1 won, but it rose 6 times in 20 days and then plummeted to the listing price in just 20 minutes after 10 days.
[Mr. Kim/Investor: (The CEO of Company A) says,'How much will it go up', and when you see it on the Internet, it's really up there. It's 600% and 800% both times.] In a
call with SBS, the CEO of Company A insisted, "I've met with a price pilot, but I haven't signed a contract." I even said it as if it were.
[CEO A: Don't mind if you go to the 3rd Won University. I'm doing it for an operation. Anyway, if you go there, you have a strategy.]
It is an open secret in the industry that many cryptocurrency consulting companies do this.
[Ex-company official: All the money is cheap and I go to the MM (Market Control) team. I gave it 500 million, but this one will make 20 billion and 30 billion. Won't you? It's a once-in-a-lifetime opportunity.]
[Sewoon Hwang/Research Fellow of Capital Market Research Institute: It means that he is doing an important market maker (MM) job on his own without verification at all.]
Cryptocurrency exploding amidst the unregulated breeze zone
.
ecosystem.
There is even market control through consulting.
(Video coverage: Kim Seong-il·Lee Jae-young, video editing: Hwang Ji-young, VJ: Jung Min-gu)
---
<Anchor>
Reporter Kim Jung-woo, who covered this alone, is here.
Q. When I contacted myself...
[Reporter Kim Jung-woo: First of all, the process of meeting was not easy. It was a structure in which the real name, mobile phone number, or business card must be disclosed in order to be able to meet in person. Otherwise, the conversation could only be communicated through a secure messenger. First of all, MM companies asked about the size of their investment.They said that listing on small exchanges cost hundreds of millions of won and billions of won on large exchanges. We assured us that there would be no big problem because we have a corporation overseas while guaranteeing about 2~3 times the profit. Actually, the MM company introduced in the previous report also has an address in Hong Kong.]
Q. Can you stop it?
[Reporter Kim Jung-woo: Yes. As you said, it is illegal to trade through information you know in advance in the stock market, or to manipulate the so-called'action'. However, since the cryptocurrency trading market is a lawless zone, there is currently no way to punish and no measures. So, all of the things that are considered illegal in the stock market are openly taking place. From this coming September, according to the special law, there is a high possibility that a large number of small exchanges will be closed. Experts point out that even large exchanges require supervision by the financial authorities.]