[Exclusive] 89 Types of Still-Traded Junk Coins... Neglected Cryptocurrency Exchanges

Upbit, Bithumb, Coinone: Cryptocurrency Trading Limited to These Exchanges... No Listing on Korbit
Some Coins Have Over 80% of Trading Volume Concentrated on One Exchange... Most Are Listed on Few Exchanges
"Exchanges Are Effectively Allowing Potential Price Manipulation"

[Asia Economy Reporter Gong Byung-sun] Despite the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Coinone, and Korbit) cleaning up junk coins ahead of the virtual asset service provider registration in September, cryptocurrencies presumed to be junk coins are still being actively traded. When a cryptocurrency is listed on only one exchange or its trading volume is concentrated on a single exchange, it can be exposed to risks such as price manipulation, but exchanges are being criticized for neglecting this issue.

According to CoinMarketCap, a cryptocurrency market data site, as of the 10th, cryptocurrencies listed on only one exchange are still being traded on the four major domestic exchanges. For Upbit, out of 108 cryptocurrencies traded in Korean won, 2 are listed exclusively on Upbit. The same applies to other exchanges: Bithumb has 7 out of 180, Coinone has 15 out of 186, while Korbit has none out of 74 cryptocurrencies listed exclusively on their platform.

Cases where trading volume is concentrated on a single exchange are also numerous. For Upbit, 24 out of 108 cryptocurrencies have over 80% of their trading volume occurring only on Upbit. Similarly, Bithumb has 34 cryptocurrencies with over 80% of trading volume on its platform, Coinone has 31, and Korbit has none.

Most cryptocurrencies with over 80% of trading volume on a single exchange are listed on very few exchanges overall. The average number of exchanges listing the 24 cryptocurrencies traded on Upbit is about 6.6. Among these, many exchanges effectively do not function as active trading venues. Cryptocurrencies traded on Bithumb are listed on an average of 3.08 exchanges, and those on Coinone on only 1.77 exchanges. Dogecoin, commonly known as a symbol of worthless cryptocurrencies, is listed on over 300 exchanges. These cryptocurrencies can be considered to have even less business expansion potential than Dogecoin.

In mid-2023, cryptocurrency exchanges consecutively delisted junk coins to comply with the amended Act on Reporting and Using Specified Financial Transaction Information, which requires virtual asset service provider registration and real-name account acquisition. Exchanges also quickly cleaned up cryptocurrencies that were listed either through direct intervention or via third parties. However, this cleanup was limited because it was conducted based on the exchanges’ own judgments rather than detailed guidelines from authorities.

Exchanges claim that they have verified the safety and security of currently traded cryptocurrencies through their own listing requirements, but they still do not disclose specific listing criteria, leaving investors uneasy. An industry insider criticized, "Due to fees, they are effectively allowing the possibility of price manipulation," and added, "Junk coins must be cleaned up for the development of the cryptocurrency market."

Although the registration of the four major exchanges as virtual asset service providers has already been completed, calls for additional measures are emerging. Professor Hong Ki-hoon of Hongik University’s Department of Business Administration said, "Since listing alone can influence the market, the purpose and reasons for listing must be explained in great detail," and added, "If possible, regulatory agencies should intervene in the listing process to protect investors."

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