High Profit Expectations Drive 'Kimchi Coin' Soaring... Caution Advised in Volatile Market

Bitcoin Hits All-Time High at 73.32 Million Won

[Asia Economy Reporter Gong Byung-sun] The so-called ‘Kimchi coins’ are rapidly rising in the virtual currency market. While investors seeking high profits are flocking to them, experts warn that caution is necessary when investing.

According to the domestic virtual currency exchange Upbit, as of 5:45 a.m. on the 2nd, Bitcoin recorded an all-time high of 73,325,000 KRW, up 2.5% from the previous day. However, investors showed greater interest in Kimchi coins, virtual currencies issued by domestic developers, than in Bitcoin, which hit an all-time high.

In fact, as of 8 a.m. that day, the highest 24-hour trading volume on Upbit was ‘Maro,’ with approximately 1.6842 trillion KRW traded. Medibloc followed in second place with a trading volume of about 1.549 trillion KRW. Meanwhile, Bitcoin ranked sixth with only about 675.4 billion KRW.

The reason for the strong interest in Kimchi coins is their potential for enormous short-term returns. Over the past month, Maro rose by 1310.34%. Metadium also increased by 1194.62%. Other Kimchi coins such as Medibloc, Moviebloc, and Emble also posted returns exceeding 600%. In contrast, Bitcoin’s return over the past month was 25.70%.

However, there are warnings to be cautious when investing in Kimchi coins. Most of their trading occurs on domestic exchanges, resulting in higher volatility compared to virtual currencies traded on various overseas exchanges.

According to the virtual currency market data site CoinMarketCap, as of the same time, Maro’s total 24-hour trading volume was about 2.3709 trillion KRW, with more than half of the trades occurring on Upbit alone. Maro is also listed on the U.S. virtual currency exchange Bittrex, but its trading volume there is only one two-thousandth of Upbit’s. In contrast, Bitcoin’s total 24-hour trading volume is about 69.5494 trillion KRW. Upbit’s Bitcoin trading volume accounts for only about 1% of the total. This distributed trading indicates a relatively solid foundation.

An industry insider said, "Kimchi coins are often small-scale and lack a solid foundation. Since they can fall as sharply as they rise, investors must exercise caution."

This content was produced with the assistance of AI translation services.