South Korea's Crypto Exchanges List and Delist Over 1,200 Altcoins

Korean cryptocurrency exchanges have listed over 1,200 altcoins since 2022 and delisted 430 of them, sparking controversy about lax screening practices. The five largest won-based exchanges - Upbit, Bithumb, Coinone, Korbit, and Gopax - listed a combined total of 1,236 new altcoins from 2022 to the end of July.

According to data obtained by Rep. Park Sung-hoon, 38 coins lost trading support less than a year after being listed, with Bithumb accounting for the most at 16. Gopax had the highest ratio of terminated listings to new ones, with 63.2% of delistings against 106 listings.

Rapid delistings can leave investors with losses, critics say, as liquidity dries up and prices fall sharply. Park Hyeon-joo, chairman of Mirae Asset Group, criticized the exchanges' altcoin listing practices, saying 'They listed 200 to 300 altcoins and 80% to 90% of customers got soaked.'

The controversy has been compounded by a recent race among exchanges to waive trading fees, which can encourage speculative trading. Korbit waived trading fees on all coins for 133 days from October 2023 through February 2024, resulting in a 1,520.8% increase in average daily turnover.