Recently, news emerged in South Korea that the company had found the Russian ship which had sunk in 1905. The treasure on the ship was worth $ 130 billion in gold coins. Also, the company went on to further announce that the users who will sign up on its cryptocurrency exchange will be able to get part of the treasure. That is why the number of signups increased dramatically. Recently, the financial watchdog of South Korea is starting the investigation into the cryptocurrency exchange.
Russian ship sinking is true:
It is true that the Russian ship sank 113 years ago. It was carrying a treasure as well. However, the value of the treasure is not entirely clear. One thing which needs to be kept in mind is that this was a mere rumor which was taken advantage of by the cryptocurrency exchange. In recent times, the cryptocurrency exchanges backtracked from its claims as well. This clearly indicates that this is nothing more than a rumour. This is one of the main reasons why it is being investigated by the financial watchdog as well.
An investigation is underway:
The website of the company even displayed the image of the ship. That is why the South Korean government is currently investigating. Moreover, it seems like, the cryptocurrency exchange is not sure about the find as well. This clearly indicates that this news might be false. It was only used for gaining media attention. As a result, the cryptocurrency exchange actually received a lot of signups as well. The problem is that such false claims actually impact the credibility of the entire cryptocurrency industry. This is one of the main reasons why governments all over the world discourage such practices.
The users who are signed up in hopes of the bonus will be now disappointed as well. Moreover, the South Korean cryptocurrency exchange will also lose its credibility. As a result, it is a bad business decision as well.
With that being said, cryptocurrency businesses all over the world are using these gimmicks in order to gain the attention of the users as well as investors. However, they will only benefit in the shorter term. In the longer term, their credibility will be negatively impacted. Due to this, it will become very difficult for them to have a sustainable business model as well.
It remains to be seen whether the South Korean government actually takes action against the cryptocurrency exchange or whether it is let off with a warning.
