On September 1st, an unexpected surge in CYBER token trading activity occurred on South Korea’s leading exchange, Upbit. However, what raised eyebrows within the cryptocurrency community was the staggering 50% price difference of this digital coin compared to other global exchanges. While CYBER touched $15.8 USD on Upbit, its price on international platforms such as Binance, Coinbase, OKX, and Huobi hovered around the $10 USD mark, leading to widespread speculation and questions.
Some attributed this price difference to a rush of South Korean investors flocking to buy CYBER, which could explain the token’s more pronounced price increase on Upbit.
However, according to BlockBeats, the primary reason for the price discrepancy on different exchanges was the substantial insurance fee associated with CYBER on the Upbit platform. Reportedly, this insurance fee can be as high as 75% compared to the global market. Consequently, CYBER’s price on Upbit had to be approximately 75% higher than other exchanges, resulting in its fluctuation around $15.8 USD. Nevertheless, the exact workings of this insurance fee remain unclear.
Upbit’s $CYBER holding increased to 3.8M.
The token is now trading around $15.8 (~75% premium compared to the global market) at Korean CEX.https://t.co/3lgysieySL https://t.co/Gybo2OtJYj pic.twitter.com/1lembTyTPh
— Scopescan (🪬 . 🪬) (@0xScopescan) September 1, 2023
Currently, Upbit holds the largest share of CYBER tokens in the market, accounting for 33% of the circulating supply. Recent days have been a remarkable period for CYBER holders as its price has surged nearly fourfold despite the volatile cryptocurrency market. However, the significant price difference between exchanges serves as a cautionary sign for investors to exercise caution and maintain a long-term perspective in the cryptocurrency market.
CYBER is trading around $12.7 USD at the time of writing, marking a 45% increase over the past 24 hours, with a market capitalization of $125 million USD. Similar instances of price divergence have previously occurred with other tokens on Upbit. For instance, on August 15th, SEI’s value reached $0.52 USD on Upbit, while it remained at $0.23 USD on Binance. However, the price gap between the two narrowed on August 16th.
In addition to Upbit, SEI’s price on Coinbase also exhibited significant disparities compared to other exchanges, rising to nearly $1 USD, four times higher than SEI’s price on Binance. Upbit, as South Korea’s largest cryptocurrency exchange, has played a pivotal role in driving the recent growth of several coins, including STG, BCH, BLUR, MINA, and others.
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