eCash Volume Soars upon Upbit’s upgrade announcement
Korean crypto traders feared for weeks that the rebranding and redenomination of BCHA to eCash (XEC) would force Upbit to delist the KRW (Korean Won) trading pair and possibly would even lead to the removal of all trading pairs on the popular exchange. The reason being that the KRW value per coin would be so low that the setting of the trading engine would not allow for a healthy trading pair.
On Friday, July 30th, in an unexpected move, the exchange made an announcement that they had added additional decimals to their KRW unit to accommodate trading of crypto currencies with low to very low per coin KRW value. XEC is an example of this and the coin will benefit greatly from this change that came into effect immediately.
Why is this change important?
At time of writing BCHA is trading at 54420 KRW. The conversion to XEC will lead to a price of 0.05 KRW per XEC (rounded down). As you can see, with only 2 decimals available the price could only go from 0.05 to 0.04 or 0.06 which is a 10% jump in price. That is not a good situation from the perspective of traders and investors. This situation could very well have led to Upbit deciding to not offer a XEC/KRW pair. Now with the new KRW units the trading pair would list a price of 0.0544 which is a much more accurate and healthy trading pair as it allows for price changes down to 0.1%.
Record Volumes for BCHA & XEC
With first Binance announcing the BCHA to XEC rebranding schedule and later this announcement by Upbit, the BCHA 24 hour trading volume rose to record heights. It led to a total 24 hour trading volume of well over 1.3 billion USD at its peak (source: Coingecko.com). Most of that volume was generated by the BCHA/KRW trading pair on Upbit where the price rose from 32336 KRW/BCHA to a short peak of over 67000 KRW/BCHA in just over 24 hours. At the time of writing the price on Upbit has retraced to 54420 KRW/BCHA which is still a very respectable gain of 68%, from where the rally started.
Renewed confidence Korean traders
Looking at the volume and price rally it is likely that the Korean cryptocurrency trading community was very happy and relieved upon learning about this fundamental change to the Upbit trading engine. Although Upbit has not yet made an announcement about rebranding from BCHA to eCash (XEC), it looks like traders interpret this change as being specifically made to accommodate the eCash project and XEC currency. It looks to have taken away all the fears of Upbit delisting as it indicates support for the very promising eCash project and XEC coin.
For information about contributing to eCashNEWS.Today - on Telegram @davidrallen, or email firstname.lastname@example.org