South Korea's cryptocurrency market is quite active. At this point, altcoins such as XRP generally see high trading volume, while some altcoins have recently exploded.
According to local news agency bizwatch, altcoins with low market value called “Kimchi Coins” experienced sudden increases in their prices.
The sudden increase in these altcoins is thought to be mainly due to the excitement created by the government-led plan to issue a won-backed stablecoin in the country.
While major cryptocurrencies like Bitcoin (BTC) and XRP are trading sideways in the country, Korean altcoins with lower market caps like MEVerse (MEV), fanC (FANC), BORA, and STMX have seen major gains on local exchanges.
At this point, MEV has even surpassed Ethereum and Solana by volume on Bithumb, one of the country's largest crypto exchanges.
While it was stated that 99% or more of the global trading volume of these altcoins took place on local exchanges such as Upbit, Bithumb and Coinone, it was also reminded that the price increases previously experienced in kimchi coins were temporary.
Altcoins known as kimchi coins have surged on rumors of a government-backed stablecoin, but there is no official partnership announced or confirmed.
Despite this, blockchain companies in South Korea have issued statements suggesting that they are aligned with the government's digital currency efforts, the report said.
An official from the securities firm warned that coins that have risen due to speculations about a won-backed stablecoin could collapse at any time, just like Paycoin, and reminded investors to be careful before investing.
*This is not investment advice.
