South Korea's Stablecoin Market Suffers Turbulent Spikes

The South Korean cryptocurrency market has been shaken by a sudden spike in stablecoin prices on two major exchanges, Upbit and Bithumb. The phenomenon occurred when EURC, a euro-pegged token, rose over 400% to 7,860 won on Bithumb and around 3,300 won on Upbit within minutes on the 14th. USDG also surged to 3,048 won on Bithumb and 1,490 won on Upbit.

The sharp price swings continued into the next day, with EURC plummeting back to its pre-surge levels about five minutes after hitting its peak. The stablecoins' transaction values skyrocketed to the 4 billion, 6 billion won range, while their circulating supplies are reportedly controlled by the top 10 traders, holding around 90% of the supply.

The industry is calling for the introduction of a market maker system to stabilize the market and secure transparency. Market makers would continually quote two-way prices to increase liquidity and reduce sharp price swings.