Recently, South Korea has witnessed an extraordinary surge in the prices and trading volumes of low-market-cap altcoins, popularly dubbed “Kimchi Coins.” This phenomenon is tied to the excitement surrounding a government-backed stablecoin project linked to the South Korean won. While major cryptocurrencies like Bitcoin (BTC) 
$78,084 and XRP remained stable, altcoins such as MEVerse (MEV), fanC (FANC), BORA, and STMX have seen significant gains, particularly on South Korean exchanges like Bithumb.
Volume Explosion in Low-Cap Altcoins
According to Biz Watch, discussions about a stablecoin pegged 1:1 to the South Korean won have become a prominent topic in the country. In this backdrop, Kimchi Coins, which were overlooked due to their low prices and limited activity, have grabbed attention again despite the lack of significant technological or development updates. Notably, MEV surpassed prominent altcoins like Ethereum (ETH) 
$2,335 and Solana 
$86 (SOL) on the Bithumb exchange in terms of volume.
Many of these coins had long been off investors’ radar due to their low price levels and limited trading activity. However, rumors of connections to the South Korean won-pegged stablecoin project have led to significant value jumps for these small-scale altcoins. This unexpected movement indicates a strong buying pressure on local exchanges.
Experts Warn of a Possible Bubble
Market experts have cautioned that the rise in Kimchi Coins might not be sustainable. Rating agency Apywa has given these coins low scores, and no verified link exists between these altcoins and the government’s stablecoin plans. There are rumors that these price movements might be related to connections with stablecoins like USDT, USDC, or payment systems.
An official from a securities company noted, “With the government’s initiative to issue a stablecoin denominated in the Korean won, fintech and blockchain companies are declaring their involvement one after another, boosting their stock prices.”
An expert has warned investors that altcoins rising due to the excitement of the won-pegged stablecoin might face a sharp decline, similar to the collapse of Paycoin. Investors are advised to carefully scrutinize the fundamental aspects of these projects before investing.
In a related development, the South Korean appeals court has upheld prison sentences for investors who illegally profited from the “kimchi premium” (higher price differences on South Korean exchanges). A group accused of smuggling approximately $296 million worth of cryptocurrency from Japan to South Korea was charged with violating currency laws and using shell companies to execute this scheme.
