Kimchi boards booming on the news of the South Korean stable – but the experts encourage caution

Kimchi parts, low-popular altcoins with popular capitalization among certain sections of the South Korean cryptographic community, have experienced rapid growth in recent days.

Experts say that this is mainly due to buzz in the new plan led by the country to launch a stablecoin to support.

But the initiates urged investors to treat the rapid increase in chips with caution, noting that the previous increases in Kimchi’s play proved to be ephemeral.

Kimchi corners: get on the Stablcoin wave?

The South Korean Media Outlet Biz Watch reported that the new stablecoin of new government has become a “burning subject” both in the financial sector and in the blockchain industry, with “linked” pieces attracting attention.

The point of sale has noted that if the crypto-cups with large capitalization such as Bitcoin (BTC) and XRP are experiencing a price stagnation, “only certain domestic documents have shown abnormal prices overvoltages.”

The examples include Meverse (MEV), which fell from Krw 3 to Krw 20 won, as well as Fanc (FANC), which went from KRW 5 to KRW 13 won.

During the same period, Nine Chronicle Gold (WNCG) went from KRW 29 won to Krw 57.

Tokens like Bora and Storm X (STMX) have also experienced price increases of more than 60% on the exchanges of interior crypto.

The parts remain popular in South Korea

The point of sale explained that MEV is a piece published by the games and entertainment company listed in Kosdaq Me2on.

Fanc, meanwhile, was published by Celebe, a startup based in Seoul specializing in mobile services and services related to social media.

In both cases, 99% or more of the global trading volume of parts takes place on interior exchanges like Bithumb and Coinone. Biz Watch wrote:

“Many of these parts have been ignored by investors for a long time. Their trading volumes and market prices were at the bottom of the rocks. As the market interest has cooled, it has become more difficult to find information on project activity levels and technological capacities. ”

Experts issue a warning

Apywa is a South Korean analyst who provides evaluation notes for national and international projects. He classifies his notes to C-, with 41.48 points out of 100.

On the other hand, it assesses BTC to A + with nearly 95 points. MEV marks 45.83 points (grade C), STMX receiving a B- and Bora a B.

Apywa deduces points for parts that have relatively low levels of community activity and development activity.

Although it is not clear if one of the projects has a relationship with the government’s own stablecoin plans, experts think that the price increase can be attributable to possible relations with floors abroad such as TETH (USDT) or USD COIN (USDC).

In other cases, the documents in these projects may have certain payment and / or settlement functions that have drawn the attention of certain traders.

At the time of writing the editorial staff, the Mev trading volumes on Bithumb exceeded those of Ethereum (ETH) and Solana (Sol).

Lessons from the past?

However, experts told the same media that they were concerned about market confusion and the possible risks on investor damage. An employee of the anonymous securities company said:

“With government pressure to issue a stablecoin, stable companies, fintech and blockchain announce business plans, one after the other. They claim relevance and their prices increase.”

An initiate of the cryptographic industry added:

“In the past, projects like Payy (PCI) have skyrocketed when local government stable was a great thing. They then dropped by more than 30% in a few days. In the same way, parts linked to the stablescoins won could also fall at any time.

The booming post-Kimchi coins on the South Korean news of Stablecoin-but the experts urge prudence appeared first on Cryptonews.

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