Merchants Worry as South Korean Cryptocurrency Exchanges Prepare to Remove Meme Cash and Kimchi Cash from Listings

South Korean cryptocurrency exchanges are reportedly preparing to remove meme coins from their listings, with the so-called “kimchi coins” also under scrutiny.

According to the South Korean media outlet Viewers, these reports have left cryptocurrency traders “concerned” that a potential “crisis” could ensue.

Are South Korean Crypto Exchanges Going to Delist Meme Coins?

The outlet stated that traders are paying attention to significant “warnings that kimchi coins” and “meme coins lacking practical use may face near extinction in the event of a market downturn.”

I express this based on my 50 years of market observation. Some will thrive from this point onward. However, too many individuals will over-leverage, miss the peak, and get wiped out in the next 50% correction in BTC, 90% correction in altcoins, and 100% correction in memes https://t.co/o33Jnq4IHz

— Peter Brandt (@PeterLBrandt) January 6, 2025

Kimchi coins are low-cap tokens that are exclusively listed on domestic cryptocurrency exchanges. While some are linked to South Korean businesses or entrepreneurs, others have no ties to the country.

Recently, numerous traders have been accused of attempting to manipulate the prices of kimchi coins.

This has drawn the attention of regulators, who have pledged to “protect investors” from price manipulation.

The media outlet cited unnamed “industry sources” claiming that the leading exchange Upbit has decided to delist Bitcoin Gold (BTG) on January 23.

This follows the Upbit listings panel’s decision to categorize the coin as a “token of concern” in December of the previous year.

The Upbit panel provided several reasons for its “token of concern” designation for Bitcoin Gold, including a lack of “transparency” in coin management. It also raised doubts about “the sustainability” of the coin’s “business” model.

Bitcoin Gold (BTG) prices over the past week. (Source: CoinMarketCap)

Is BTG Just the Beginning?

The media outlet highlighted that most major global cryptocurrency exchanges delisted Bitcoin Gold several years ago. This indicates that the token has effectively become a “kimchi coin,” it noted.

On the last day of 2024, 80.4% of all global Bitcoin Gold trading occurred on Upbit. On the same day, 18.1% of BTG traders were active on domestic competitor Bithumb, and 0.23% on Coinone.

According to Maeil Kyungjae, Coinone has attempted to capitalize on this situation by offering customers Bitcoin (BTC) giveaways if they transfer their BTG coins from a competing domestic platform.

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— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) January 7, 2025

The Bitcoin Gold situation is unlikely to please regulators, who have long urged cryptocurrency exchanges to streamline their listing and delisting processes to prevent price manipulation attempts.

Viewers reported: “The confusion is expected to be resolved when the financial authorities present their guidelines on listing and delisting.”

Previous efforts to establish a self-regulatory body for the industry appear to have failed.

A self-governing body has been established. However, the body’s lack of “enforcement power” means “each exchange still employs its own listing and delisting criteria,” the media outlet stated.

Are Meme Coin Developers Taking a Different Approach?

Viewers also reported that traders are now worried that meme coins “created solely for entertainment” could “be eliminated in the event of a market correction.”

It claimed the industry is aware of “a movement to move away from simple meme coins, citing Shiba Inu (SHIB)’s new ecosystem token project TREAT as an example.

Shiba Inu (SHIB) prices over the past week. (Source: CoinGecko)

James Toledano, the Chief Operating Officer at Unity Wallet, told Cryptonews.com that the future of meme coins “depends solely on their ability to evolve beyond hype.”

Toledano contended that tokens must “demonstrate some intrinsic value or utility.” However, he added that the popularity of meme coins “illustrates the power of community-driven narratives within the crypto space.”

“For meme coins to endure, they must incorporate tangible use cases, such as payments, DeFi integration, or gamification, rather than relying solely on speculative trading and trivial memes. Meme coins may persist as cultural phenomena. However, their long-term viability will require a shift towards value creation, rather than pure speculation.”

James Toledano, Chief Operating Officer, Unity Wallet

Meanwhile, an unnamed insider from a South Korean exchange told Viewers:

“Speculative patterns are repeatedly observed in the crypto market. When the market bubble bursts, meme coins and other coins lacking utility will inevitably be the first to suffer.”

Gemini Trust Company agreed to pay a civil penalty of $5 million to settle US Commodity Futures Trading Commission charges related to statements it made concerning its bitcoin futures contract in 2017, a court filing confirmed https://t.co/AQ4mlWx4tm pic.twitter.com/t5p2GaFPBU

— Reuters Legal (@ReutersLegal) January 6, 2025

“Meme coins lack real value. They symbolize the immaturity of the overall crypto market. However, I believe it’s a phase the market must experience to mature properly into what it can become. Will meme coins always exist? Yes. But their popularity will diminish in favor of projects that genuinely provide utility.”

Matthew Ruley, Director of Content at Dypto Crypto, speaking to Cryptonews.com on Jan. 7

Despite numerous warnings, there is no clear indication of a slowdown in meme coins at this time. The latest meme coin from the Solana community, Pudgy Penguins, recently achieved a market cap of $2.85 billion.

“Sasa” is an essay where I explain why I believe #crypto peaks in mid-March and then undergoes a significant correction. Until then, it’s time to celebrate. https://t.co/Apt124sOjp pic.twitter.com/LKQ24GMtpq

— Arthur Hayes (@CryptoHayes) January 6, 2025

Nonetheless, some experts believe a “correction” is now unavoidable. Former BitMEX CEO Arthur Hayes asserted on January 6 that cryptocurrency markets would reach their peak in mid-March this year before “undergoing a significant correction.”

The post Traders Concerned as South Korean Crypto Exchanges ‘Set to Delist Meme Coins, Kimchi Coins’ appeared first on Cryptonews.