South Korean Exchanges Hit by Stablecoin Price Spikes
Stablecoins on South Korean crypto exchanges Upbit and Bithumb have been making headlines for all the wrong reasons. In a bizarre incident that has reignited concerns over liquidity shortages, EURC on Bithumb's Korean won market surged more than 400% in just one day before crashing back down to its previous levels. The same pattern repeated itself the next day.
The price spike of EURC from ₩1,513 (approximately $1.1) to ₩7,860 (approximately $5.7) on Bithumb was a stunning 400% increase in just one day. Global Dollar (USDG), another dollar-pegged stablecoin, also saw a significant jump to ₩3,048 (approximately $2.2) on Bithumb and ₩1,490 (approximately $1.1) on Upbit.
The flash spikes occurred only on South Korean exchanges, with no significant price movement reported on global platforms like Coinbase. This suggests that the temporary price distortion was due to a combination of low liquidity and buy/sell order concentration on these exchanges.
Trading volumes also surged dramatically, with both stablecoins recording ₩4 billion to ₩6 billion (approximately $4.3 million) in volume for two consecutive days. The top 10 traders are known to hold 90% of the circulating supply of both assets, but the specific parties behind the orders and whether market manipulation occurred cannot be confirmed.