- Kimchi Coins surge despite weak fundamentals, driven by stablecoin speculation.
- Dormant altcoins post triple-digit gains on Bithumb and Upbit amid policy rumors.
- South Korea tightens crypto laws as courts crack down on arbitrage exploitation.
In South Korea’s volatile crypto market, a surprising trend has taken center stage low-cap domestic altcoins, known as “Kimchi Coins,” are making a dramatic comeback. This resurgence follows renewed interest in a government-supported stablecoin linked to the Korean won.
While major cryptocurrencies like Bitcoin and XRP remain flat, a collection of obscure local tokens is witnessing record-breaking price surges and trading volumes, especially on platforms like Bithumb and Upbit. These sudden movements are not rooted in project developments but rather market speculation and the ripple effects of national financial policy news.
Dormant Tokens Find New Life
According to Biz Watch report, several tokens long considered dormant have seen sudden price explosions. MEVerse (MEV) jumped from 3 won to 20 won within days. Similarly, fanC (FANC) surged from 5 won to 13 won, and WNCG nearly doubled in value.
Others, like BORA and StormX (STMX), posted gains above 60%. These assets are traded mostly on local platforms and are backed by Korean companies. For instance, MEVerse is linked to Mituon, a KOSDAQ-listed firm, and fanC is issued by Sellerbee Korea.
Most of these coins have historically suffered from low liquidity and little public attention. Their technological updates, developer activity, and community engagement remain minimal. Yet, the current frenzy is driven by themes, not fundamentals. Many investors are jumping in purely based on speculative links to the government’s stablecoin initiative, despite no official confirmation of their involvement.
Hype Outpaces Reality
Crypto rating agency Appiwa has flagged risks. MEVerse received a score of 45.83 with a ‘C’ grade, while fanC scored even lower. These coins lack the stability and operational transparency expected in this kind of price movement. However, the possibility that these coins may somehow relate to international stablecoins like USDT or USDC has fueled more excitement.
Besides, blockchain startups are using the government’s stablecoin narrative to pitch new plans and attract funding. This wave of announcements has even pushed stock prices of associated firms higher. However, market analysts caution that such behavior may mislead investors and inflate bubbles without substance.
Legal Consequences and Investor Caution
Meanwhile, in a related crackdown, a South Korean court upheld jail sentences for traders who exploited the “Kimchi Premium” arbitrage loophole. The case involved smuggling $296 million in crypto from Japan to South Korea using shell companies. This ruling sends a clear message regulatory oversight in the Korean crypto space is tightening.
