The South Korean cryptocurrency market is experiencing a surge in prices of low-cap altcoins, known as Kimchi Coins, following discussions of a new government-backed stablecoin linked to the Korean won.
Low-Cap Tokens See Explosive Volume
According to local media outlets like Biz Watch, the won stablecoin has become a hot topic. While major cryptocurrencies like Bitcoin and XRP remain stable, low-cap Korean altcoins such as MEVerse (MEV), fanC (FANC), BORA, and STMX have seen significant gains on local exchanges. For instance, MEV even outpaced Ethereum and Solana in volume on Bithumb. Many of these tokens were overlooked before due to their low prices and minimal activity, but are now back in the spotlight despite limited updates on their technology or progress.
Low Ratings, High Hypes Spark Doubts
However, experts warn that this rally may not be sustainable. The ratings firm Appiwa has assigned low scores to many of these coins. While there is no confirmed link between these coins and the government's stablecoin plans, rumors regarding their ties to USDT, USDC, or potential payment use may be driving the prices. One official from a securities firm stated, "With the government's push to issue won-denominated stablecoins, fintech and blockchain companies are announcing business plans one after another, claiming relevance, and raising their stock prices." An expert cautioned that coins rising on stablecoin hype could crash at any time, similar to Paycoin, advising investors to be careful and check the fundamentals before investing.
Kimchi Premium Traders Sentenced
In related news, a South Korean appeals court has upheld jail sentences for traders who exploited the kimchi premium to make illegal profits. The group smuggled nearly $296 million worth of cryptocurrency from Japan to South Korea, taking advantage of price differences. The court ruled that the traders violated foreign exchange laws and used shell companies to carry out their scheme.
Thus, the situation with Kimchi Coins in the market demonstrates both growth potential and investment risks. Investors are advised to exercise caution and thoroughly verify project information before making any decisions.
