- South Korean crypto exchange Coinone has launched an investigation into the NFP token dispute.
- The token experienced a 70% dip on Coinone while the price remained steady in global exchanges.
- Though the NFP Foundation reported a hack, Coinone said the NFP tokens were correctly distributed.
Coinone, a South Korean crypto exchange, has brought in local and Canadian law firms to investigate the NFPrompt (NFP) token dispute. In March, Coinone’s NFP price plummeted 70%, while prices on international cryptocurrency exchanges remained relatively stable. Coinone’s decision to launch a probe comes on the heels of South Korea’s investigation into the AVAIL token.
At the time of this writing, the NFP token is trading at $0.2303, down 5% in the past day. Although it’s down 1.15% over the past week, the token is up 1.91% over the past 30 days. The massive 46% drop in its 24-hour trading volume shows the community’s decreasing interest in the token.
NFP Foundation Alleges Hack, But Coinone Finds No Evidence
Before the token’s unusual price drop on Coinone, the NFP Foundation, the NFP token’s governing body, reported a hack. Afterward, the platform asked global exchanges to temporarily suspend the token’s activities. However, saying the NFP Foundation hadn’t provided sufficient proof, Coinone refused the halt request and continued NFP trading. This led to a sell-off frenzy, causing a significant price downtrend on the exchange.
Coinone’s internal investigation found that the disputed NFP tokens were correctly distributed, contradicting the NFP Foundation’s hack claim. However, the foundation has provided limited assistance for token swaps, leaving roughly 700 affected Coinone users with little recourse to recover losses.
South Korea Steps Up Regulatory Action
Recently, the South Korean National Assembly launched a detailed probe into the AVAIL token over price manipulation concerns. According to reports, Democratic Party lawmaker Min Byeong-deok called the token the “second Burger Coin,” referring to foreign tokens traded on domestic exchanges.
Read also: South Korea May Soon Allow Bitcoin Spot ETFs
South Korea is working to establish regulatory clarity, as evidenced by the introduction of its first customer protection law. This move seeks to increase investor confidence and safeguard consumer interests.
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