South Korea’s Financial Supervisory Service (FSS) summoned three cryptocurrency exchanges—Coinone, Korbit, and GOPAX—on Dec. 12, following the extreme price volatility of MOVE coin, to address concerns over market stability and potential unfair trading practices, according to industry sources on Dec. 20.
The meeting took place just three days after the sharp price volatility surrounding MOVE coin, a recently listed cryptocurrency. Notably, S. Korea’s largest exchanges, Upbit and Bithumb, were not called to attend.
During the meeting, the FSS urged exchanges to exercise caution and enhance internal monitoring regarding the sudden price surges and drops of newly listed cryptocurrencies. The agency specifically addressed Coinone, where the MOVE coin volatility occurred, emphasizing the need for greater care.
Additionally, the FSS requested data from Coinone to investigate whether unfair trading practices were involved and to determine the circumstances behind the incident. Coinone was also required to submit a plan to prevent similar occurrences, which the agency is currently reviewing.
MOVE coin, issued by the Movement Network Foundation, became a hot topic among investors after its value skyrocketed 46,000 times its reference price shortly after listing. It was introduced on Coinone at 8 p.m. on Dec. 9, starting at a reference price of 215.3 won (approximately $0.16). By 8:41 p.m., the coin’s value had surged to about $760, only to plunge to the $4 range just 16 minutes later.
Despite the extreme price fluctuation, financial losses were minimal. Only 0.076 units of MOVE coin were traded at the peak price, amounting to less than about $76. Nonetheless, the FSS took the matter seriously, as recurring incidents of such volatility could harm the reputation of the cryptocurrency market and place pressure on both regulators and exchanges.
MOVE coin is based on MOVE, a blockchain programming language initially developed by Meta, formerly Facebook. The language is already in use by blockchain projects such as Aptos and Sui. The coin’s launch garnered significant attention as it aimed to address Ethereum’s scalability issues through its Layer 2 blockchain network.
MOVE coin was listed on Coinone, Upbit, and Bithumb, but Coinone listed the cryptocurrency a day earlier than the other two exchanges. Upbit and Bithumb had delayed their listings due to liquidity concerns.
Industry insiders suggest that the volatility on Coinone was likely expected, as coins launched on smaller exchanges with limited liquidity often see sharp price swings. This dynamic is believed to have influenced the FSS’s decision to summon the exchanges.
