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제목 [Monthly JungAng] “For a second, I thought I could get rich…”

[Monthly JungAng]

“For a second, I thought I could get rich…”

Seeking out high-risk invest for ‘super-quick-kill invest’ to cover the principal
2030 ‘get-rich-quick fever’, includes inequality between generations

After the ‘January heavy fall’ of Cryptocurrency



A Bitcoin exchange CS center, crowded with crypto investors. Even after the great heavy fall, many people wonder around the center to cover the principal.

Crypto market had heavy fall on this January. Bitcoin declined 75% compared to maximum price, falling to 6.6 million won this February.
Investors who lost money in a second are saying “Want to kill myself” but still, holding their phone with exchange app on it, trying to cover the principal.

“Making Cryptocurrency is a piece of a cake for programmers if you know the source code.
There’s a new cryptocurrency when you give a great name to the open blockchain tech source.
If you do great pumping, it’s easy to inflate few ten times.” Said, college student A, I met in online community.
He who majors in computer science, is preparing to develop cryptocurrency with his friends.
His idea is to make cryptocurrency based on blockchain technology and proceed ICO and get heavy investment.
“Isn’t that a scam?” I asked, and A replied, “There are very few legit business plan or vision among those cryptocurrency in the market”
Also, he said he had experience of getting scammed by investing in new cryptocurrency expecting it would be a big hit if it gets listed.
“I don’t really feel sorry since I am doing it to strangers who I don’t know the faces or nationalities”
It’s a phrase where we can see a slice of those few young adults running into cryptocurrency investment following “big hit”.
Last December, an unidentified high school student said he would develop a cryptocurrency derived from bitcoin, but later revealed as fraud.
So-called ‘Bitcoin Platinum (BTP) fraud’. A high school student who claims that he participated in team said to the press that
“We formed development team with seniors and juniors in high school and actually proceeded with new cryptocurrency development”.
When it was revealed as a fraud, cryptocurrency market hit heavy fall and 50 trillion won has vanished.
Earlier, Department of Justice analyzed that “Since blockchain is already open technology, a new cryptocurrency can be made with 60 million won.”
through the report ‘Problem and Solution of Cryptocurrency’, meaning it is almost a fraud that an immaterial cryptocurrency
which can be made by anybody is bought and sold for thousand billion won or even trillion won.

Cryptocurrency make in a second with 20 million won, 2030 fallen in ‘Get-rich-quick fever’


Park Sang Ki, Minister of Justice answering questions about cryptocurrency and current issue at the meeting of justice press corps.

Actually, making a cryptocurrency is not a difficult work. Ryu Do Hyun, CEO of PAYANPAY, who developed ‘EX by Ethereum’ said that
“Since there is no royalty for cryptocurrency, it is easy for young people to enter that business.”
And “If you can understand the white paper, you can easily make similar cryptocurrency”.
He also said, “If you ask developer company, you can make cryptocurrency like ‘Bitcoin’ within 20 million won.”
and “The price gets higher with options such as homepage or e-wallet” and explained “There are some cases of pyramid schemes approach and ask for development”.
The environment for so called ‘mass produce cryptocurrency’ to be made is already arranged.
The absurd dream of being rich by making cryptocurrency started from 2016 when cryptocurrency boom started domestically.
It intrigued young generation who are familiar with computer, with its low barrier for fund and technology.
It is possible because existing cryptocurrency developers opened their whitepaper which contains blockchain theory on the internet.
A success story of young people with cryptocurrency induced them. Vitalic Buterin, who made the world’s 2nd cryptocurrency in terms of market capitalization,
Ethereum, is only 23 years old. Ether he possesses are half million. If converted to current market price of February 13th today, is almost 4940 billion won.
Cryptocurrency companies gather investment by providing token in return of fund for development before issuing cryptocurrency.
The industry calls it ‘pre-sale’. Right before the heavy fall this January, the expectation of ‘Cryptocurrency always goes high’ made the tokens selling.
However, tokens listed in exchanges and distributed are very few.
Another developer Lee (35) said “This cryptocurrency can’t even come near exchange. It ends with only company earning money.”
Financial Services Commission banned domestic ICO last September. But Lee showed expression as if it is nothing.
He said, “I’m planning on having ICO in Estonia, northern Europe.”
Estonia is known for being very generous about cryptocurrency, even issuing Estocoin, which runs by government and even having ICO.
B, who resigned from work in his 30s and went into cryptocurrency field, is also preparing his own ICO. He entered cryptocurrency world through Bitcoin trading at first.
He was fascinated by the potential of cryptocurrency and blockchain when he invested by himself. The first business he tried after quitting the job was a crypto mining farm.
A computer which decodes high level code is needed to earn the cryptocurrency, and it is almost impossible to run it at home because of massive electric bill and noise.
So, miners pay the factory to manage it. B operated factory with 100 digger computers, 70 for himself and 30 for the management in trust.
Then, he decided to develop a cryptocurrency by himself, thinking ICO could be a fortune. He is composing whole different idea of cryptocurrency there ever was.
B also established foundation in Estonia. It was not hard to make paper company. B said, “I would not do any scams like selling coin and run.”
He also mentioned “If this business plan goes right, it could be one of the great cryptocurrencies, I expect.”
And “The biggest charm of ICO is that if you have an idea, you can collect business fund in any degree. Why can’t Vitalic Vuterin be born from Korea?”
‘A day is long enough investment’ 2030 generation fallen in quick kill.
There are many young people chasing the dream of big hit by exchange trading.
Exchange trading is an example of increasing investors according to the market price.
College student Kim (25) is suffering from severe anxiety and depression after he had a bad investment on cryptocurrency.
The trigger to crypto investment was after when he saw a guy his age who invested in bitcoin when it was worth 80000won and now have almost 280 billion won.
Kim invested in Altcoin with the 25 million he earned from part-time job.
At first, price of cryptocurrency has rapidly increased. 25 million won became 60million won in few days and after a month, it was 100 million won.
He persuaded his parents and made investment up to 400 million won. It was all the money of the family.
He promised his mother, who had health issue, “I will make you quit the job and buy you a building”
but not so long after he invested 400 million, cryptocurrency had its heavy fall. Total 450 million won became 70 million won.
He had lost all the money his mother saved up for her life.
Kim said “It’s terrible. I want to kill myself”. Recently, his mother asked him “how’s the investment going?” and he had to lie like “There’s nothing to worry.”
Whenever he did that, he felt so guilty. Even so, he said, “It’s impossible to cover the principal with wage earning.” and “I think the only chance is cryptocurrency.”
With crypto heavy fall is getting longer, it affected foreign car market unexpectedly.
Many of those who tried to buy expensive foreign cars, thinking so sure about future income in cryptocurrency increase, canceled the deal after the loss becoming bigger.
Kang (29), who works in mobile retails, invested in Ripple last December and experienced 10million won becomes 20 times larger in just a month.
He bought German sedan which costs 80million won right away. However, Ripple had heavy fall due to government’s announcement implying abolishment of crypto exchange.
He’s investment reduced to 30million now.
He directly called the car dealer and canceled the deal. The foreign car which turned out to be a just imagination was all over his head.
He looks at the cryptocurrency application on the phone always. He said “I thought I could change the way I was born financially, and I went greedy.
I had to cut it out when it hit the heavy fall, but I didn’t. I blame myself for that.” He said at least two of the people he knows canceled foreign car.
Huge loss of principal brings investors back to cryptocurrency.
They go into invest addiction. Im Jung Nim, manager of Prevention Education Department of Korea Center of Gambling Problems said,
“Unlike gambling, since cryptocurrency is legal investment, a lot of people do not recognize it as addiction, so it takes long before treatment.”
and “Treatment also takes long because most of the cases had gone to serious level.”, she analyzed.

Monday, 13th, current bitcoin market price is around 10million won for days. There is no huge dramatic increase or decrease like it used to have.
Unsatisfied investors are seeking for high risk investment other than cryptocurrency.
Kim (31), an officer, saved 1800 out of 2000 by getting out of the heavy fall early.
He’s looking for KOSDAQ category to invest it. He had offers of fund, but 7~8% income goal of fund did not satisfy him.
He said, “Since I heard so many stories about how they earn over 100times higher of principal by cryptocurrency, it made me think earning rate of fund is too low.”
and “I am going to select a category that has high fluctuation and trade.” 

"Cryptocurrency is going down… I’m moving to sunlight"

A petition opposing the regulation was posted on the Blue-house homepage on November 11th, when Ministry of Justice announced that it will abolish cryptocurrency exchange.

There’s a rumor going around students studying for public officers that those who invested in cryptocurrency lost their money and time.
A student having meal in a kosiwon in Noryangjin.

Cryptocurrency developer, Lee is thinking of switching a career. Lee said, “After earning as much as I can with this ICO, I am going to get out of cryptocurrency market.”
To the question ‘where are you heading?’, he answered, “Cryptocurrency is going down anyway” and “There’s a new situation coming up at new renewable energy”.
He even showed an article about a new renewable energy company and said, “This company now has stock price of 2000won, but it will go up to 30000 won in next year”,
showing great expectations.  At the end of cryptocurrency boom, a new ‘bubble’ is starting to grow.
About the situation 2030 generations going crazy on cryptocurrency, experts diagnose with “a mixture of rage about reality being stuck in glass ceiling and a desire for liberation”.
Last December 28th, a petition was made on the Blue house national petition homepage, and its title was “Did government ever made citizens to have happy dream even for once?’.
This petition had over 200,000 participants in 18 days. A rage of young generation had just exploded when cryptocurrency had heavy fall after the minister of justice announced that
 “Ministry of Justice have made an item aiming for abolishment of cryptocurrency exchanges” on January 11th.
The petitioner said, “With cryptocurrency, I had a dream of ‘I might get a house in this Korea where it’s incredibly difficult to get a house’”
and “The world government sees, and the world we citizens see are different.”
On the 3rd Gallup poll of January, 5% of total respond selected ‘cryptocurrency’ as the most profitable investment technique.
Sim Young Sup, professor of psychology of Daegu cyber University, analyzed “The reason why people express their anger is because they feel it is justifiable anger.”
A sociology professor of Seogang University said, “It points out the problem of caste system which is getting even more difficult to rise in status.”
And explained “We need to focus on the fact that the object of anger is the older generation who solidifies the vest rights.”
That it is not right for older generations to enjoy the vest rights but to ask young generations to have moral compass.
A direct example is recruit corruption, which recently revealed constantly. According to the filed inspection on bank industry reported last January,
there were cases such as fixing interview scores of children of customer company or executive of Human resources participating in their kid’s job interview.
Revealed corporates are Woori, Kookmin, Shinhan, Hana bank and more, the banks which job applicants wishes to be.
In case of Kangwon Land, 95% of new officers recruited in 2012 are hired due to external request.
However, it is also pointed out that we need to be alerted for dreaming raise of status by using cryptocurrency as speculation.
Professor Jeon said that “Seeing cryptocurrency as the last chance of stepping up the status is same argument as ‘Since there are people who succeeded by pyramid scheme,
put a major of pyramid scheme in university’” but also stressed that “We need to seriously approach to the social matters that angers young generation such as education, 
employment and residence as well as the government’s poor handling of the situation.”

Source : Jungang Ilbo MontlyJungang Moon Sang Duk

Date : 2018-02-20