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South Korea’s Crypto Market Faces Volatility With 34.9% Delisting Rate

Press Releases Crypto News BeInCrypto South Korea’s Crypto Market Faces Volatility With 34.9% Delisting Rate

Crypto in South Korea continues to draw attention due to the high delisting rates and the financial risks posed to investors. Over the past seven years, 34.9% of cryptocurrencies listed on South Korean exchanges were delisted, with half surviving less than two years.

While initial listings on these exchanges often led to short-term price boosts due to increased investor attention and demand, the long-term prospects are far less certain.

South Korean Investors Suffer Crypto Delistings

This trend is troubling for investors who may rush to buy new coins following a listing, expecting sustained growth. A typical pattern emerges where the coin sees a price spike soon after listing, driven by hype and enthusiasm, especially from retail investors.

However, many cryptocurrencies fail to maintain their momentum and face declining value over time. Ultimately, they are delisted from the exchanges.

“…from January 2018 to August 2024 showed that 517 (34.9%) of the 1,482 virtual assets listed on the exchanges were delisted… The average listing period for the 517 delisted virtual assets was 748 days (2 years and 18 days). However, more than half (54.0%) of these (279) did not last even two years and were delisted. Meanwhile, 107 (20.7%) did not last even one year,” local Korean media reported.

The problem is compounded by the fact that cryptocurrency listings and delistings in South Korea, like in many other regions, remain largely at the discretion of the exchanges. Although South Korea passed the Virtual Asset User Protection Act in July 2023, which aims to safeguard investors in the digital asset market, the law has not imposed clear standards for listings or delisting.

This regulatory gap gives exchanges the power to list an

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Author: Lockridge Okoth

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