In recent days, kimchi coins—altcoins favored by segments of the South Korean cryptocurrency sphere—have experienced a significant surge in value.
This rapid escalation is largely attributed to growing excitement surrounding a government-backed initiative to introduce a won-pegged stablecoin. However, industry insiders caution investors to remain vigilant, as previous increases in kimchi coin prices have often proven to be short-lived.
Kimchi Coins: Surfing the Stablecoin Trend?
According to a report from the South Korean media outlet Biz Watch, the newly proposed won-pegged stablecoin has sparked considerable interest within both the financial and blockchain sectors, leading to a surge in related cryptocurrencies.
While major cryptocurrencies like Bitcoin (BTC) and XRP have seen little movement in their prices, the report indicates that specific domestic digital currencies have witnessed remarkable fluctuations.
Among these, MEVerse (MEV) has surged from approximately KRW 3 to KRW 20, alongside fanC (FANC), which saw its value rise from KRW 5 to KRW 13. During the same time frame, Wrapped Nine Chronicle Gold (WNCG) jumped from KRW 29 to KRW 57.
In addition, other tokens such as BORA and Storm X (STMX) have recorded price increases exceeding 60% on local cryptocurrency exchanges.
Continued Popularity of Coins in South Korea
Biz Watch reported that MEV is linked to the KOSDAQ-listed gaming and entertainment firm Me2On, while fanC is tied to CELEBe, a startup focused on mobile apps and social media services. Notably, over 99% of these coins’ global trading activity occurs on domestic exchanges like Bithumb and Coinone.
The report highlighted that many of these assets had been overlooked by investors for an extended period, leading to significantly low trading volumes and market prices. As interest in the market wanes, it has also become more challenging to find information regarding project activities and technological advancements.
Experts Sound the Alarm
Apywa, a South Korean analytics firm, has been assigning evaluation grades for both domestic and international projects. Currently, it rates fanC at C-, scoring 41.48 out of 100, while Bitcoin holds a prestigious A+ with nearly 95 points. MEV received a score of 45.83 points (grade C), while STMX and BORA were rated B- and B, respectively.
The firm deducts points from coins that exhibit lower levels of community engagement and development activity.
Bank of Korea governor is likely to discuss the quick issuance of Won-based stablecoins with the country's commercial bank heads.#BankofKorea #Stablecoin #KoreaStablecoin https://t.co/wmeoChNMkC
— Finance Newso.com (@Finance Newso) June 11, 2025
While the correlation between these projects and the government’s stablecoin initiative is not established, experts speculate that the price increases might be connected to associations with international stablecoins like Tether (USDT) or USD Coin (USDC).
Additionally, some of these projects may possess payment or settlement functionalities that have attracted the attention of traders.
As of the latest updates, MEV trading volumes on Bithumb have outpaced those of Ethereum (ETH) and Solana (SOL).
Reflections on Past Trends
Experts have expressed concerns regarding potential market confusion and risks to investors. An unnamed employee from a securities firm remarked:
“With the government’s intention to launch a won-denominated stablecoin, fintech and blockchain companies are hastily releasing business plans, asserting their relevance, which has resulted in rising prices.”
A crypto industry veteran warned, “Historically, assets like Paycoin (PCI) saw dramatic spikes during periods of heightened government stablecoin interest, only to then plummet by over 30% in mere days. Similarly, tokens associated with the won-based stablecoin could also experience significant downturns unexpectedly. Investors should thoroughly evaluate the operational status and viability of these projects and proceed with caution.”
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