Kimchi Coin Explosion: What's Driving the Sudden Surge?
Some small Korean altcoins, called "Kimchi Coin", suddenly surged strongly, causing a stir in the cryptocurrency community. This event occurred after a government-backed stablecoin linked to the won attracted significant attention from investors and analysts.
Low Capital Tokens Reach Horrifying Trading Volume
Local Cryptocurrency Market Heats Up
According to Biz Watch, the won-based stablecoin has become the hottest topic on domestic exchanges. While Bitcoin and XRP remain stable, small-cap altcoins like MEVerse (MEV), fanC (FANC), BORA, and STMX unexpectedly recorded outstanding increases, especially on Bithumb. MEV even surpassed Ethereum and Solana in trading volume, demonstrating growing interest.
Forgotten Moment Now Returns
These low-capital cryptocurrencies were previously overlooked due to low prices and limited activity. However, they have now attracted attention again. Despite few clear updates about technology or development strategies, this interest reflects a strongly fluctuating market sentiment.
Low Evaluation, High Inflation Raises Suspicions
Risks from Inflated Stories
Experts warn that the price race of these Kimchi coins may be just a temporary fever. Appiwa rating company has downgraded many of these Tokens to low levels, indicating potential risks. Although there is no clear connection between these coins and the government's stablecoin project, rumors about potential links with USDT, USDC, or payment purposes could be driving prices.
Potential Bubble Risk
An analyst notes that, similar to Paycoin previously, coins increasing in price based on "crowd psychology" or hype about the won stablecoin could collapse at any moment. Investors need to be cautious and carefully examine fundamental factors before deciding to invest.
Kimchi Premium Market and Related Penalties
Traders Convicted for Exploiting "Kimchi Premium"
In another development, a Korean court confirmed prison sentences for traders exploiting profits from "Kimchi Premium". These individuals smuggled nearly $296 million in cryptocurrency from Japan, taking advantage of price differences between markets for illegal gains.
Law and Market Control Status
The court determined that these traders violated foreign exchange laws and used shell companies to conceal their actions. This demonstrates that the Korean government is increasingly tightening regulations to control speculation and fraud in the domestic cryptocurrency market.
