Kimchi Coins Take Off: Here’s What’s Fueling the Sudden Spike

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Some small South Korean altcoins called “Kimchi Coins” are suddenly exploding in price and it has got everyone talking. This comes after the recent hype around a new government-backed stablecoin linked to the Korean won.

Low-Cap Tokens See Explosive Volume

Biz Watch, a local media outlet, reports that the won stablecoin has emerged as a hot topic. While major coins like Bitcoin and XRP remain flat, the low-cap Korean altcoins like MEVerse (MEV), fanC (FANC), BORA, and STMX have seen massive gains on local exchanges. MEV even outpaced Ethereum and Solana in volume on Bithumb.

Many of these tokens were ignored for a while due to their low prices and little activity. But they are now back in the spotlight despite limited updates on their tech or progress.

Low Ratings, High Hypes Spark Doubts

But experts warn that the rally may not last. Ratings firm Appiwa also gave many of these coins low scores. There is no confirmed link between these coins and the government’s stablecoin plans, but the rumors of their ties to USDT, USDC, or payment use may be driving the prices. A securities firm official said,

“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 warned that coins rising on won stablecoin hype could crash anytime, just like Paycoin did, and advised investors to be careful and check the project’s fundamentals before jumping in. 

Kimchi Premium Traders Sentenced

In a 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 the price differences. 

The court ruled that the traders violated foreign exchange laws and used shell companies to carry out their scheme.