"Ah, I'm Really Mentally Crushed" 2030s Buying Junk Coins... Sudden Poverty and 'Anxiety'

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The coin prices are displayed on the price board at Bithumb Gangnam Center in Gangnam-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] "I can't sleep and feel like I'm going to have insomnia." , "Now I just don't think about it."

As cryptocurrency exchanges are consecutively delisting so-called 'junk coins' such as small-scale cryptocurrencies, investors' anxiety is growing. Especially since many investors are young people in their 20s and 30s, deep sighs are spreading mainly through online communities. Some are investing in so-called 'delisting coins' hoping for a sharp rise before delisting, showing what is called 'high-risk' investment behavior.

Moreover, some coins scheduled for delisting on Exchange A are still tradable on Exchange B, causing a rush to Exchange B. Considering the situation as a whole, it can be seen as a 'junk coin-induced chaos.'

Park, a man in his 30s who recently revealed he suffered heavy losses investing in junk coins, is experiencing insomnia. This is because the coin he invested in was placed on the delisting list and its price plummeted immediately.

Park said, "I lost more than half of my principal investment," and lamented, "I want to recover my losses, but there is no way." He added, "I can't sleep well because of stress."

Kim, a man in his 20s working at a company, is in a similar situation. Kim said, "I saved a lump sum to invest, but it disappeared quickly," and sighed, "People around me say to think of it as a kind of 'financial investment tuition fee,' but it hurts so much inside."

[Image source=Yonhap News]

According to the financial sector on the 20th, Bithumb, the second-largest cryptocurrency exchange, announced on its homepage that it will end trading support for four coins?Aeternity (AE), Aurora (AOA), DragonVein (DVC), and DVP?at 3 p.m. on the 5th of next month. In addition, two coins, Apix (APIX) and Lambda (LAMB), were designated as investment caution items.

When designated as investment caution items, a 30-day grace period is given to review the cryptocurrency plans again. After that, the investment caution designation is either lifted or trading support is terminated.

Industry observers expect more delisted coins to appear in the future. Exchanges are preparing to file business reports with financial authorities by September, and they are preemptively cleaning up substandard coins. Therefore, delisted coins could emerge from any exchange in June, July, or August.

Earlier, on the 11th, Upbit announced it would suspend trading of five coins including Paycoin and designated 25 coins as investment caution items. Coinbit also announced on the 15th that it would end trading support for eight coins on the 23rd and designate 28 coins as caution items.

Anxiety and sighs among investors in their 20s and 30s can only deepen. Because of this, some investors unable to sell at plummeting prices move delisted coins to other exchanges. A recently announced exchange that is delisting coins allows a period for moving the coins to other exchanges where they are still listed after trading ends.

However, the impact of the price crash remains largely unchanged, so many believe this method is insufficient to fully recover losses.

A coin investor in his 30s, Lee, said, "Once a coin is marked as investment caution or scheduled for delisting, investors tend to avoid it," adding, "It's the best method available, but there are inevitably limits." He continued, "I have to sell when I buy a delisting coin and someone else buys it, but that is extremely stressful."

Meanwhile, commercial banks are reportedly starting to review the issuance of real-name accounts for the four major cryptocurrency exchanges in accordance with the revised Act on Reporting and Using Specified Financial Transaction Information (Special Financial Transactions Act).

According to the financial sector on the 20th, K Bank, NH Nonghyup Bank, and Shinhan Bank are conducting 'money laundering risk assessments for virtual asset service providers (cryptocurrency exchanges)' targeting Upbit, Bithumb·Coinone, and Korbit, with which they currently have real-name account partnerships.

K Bank began preparing evaluations with Upbit last month and recently entered full-scale screening. Shinhan Bank has been conducting a written evaluation of Korbit since early this month. Nonghyup Bank received evaluation materials from Bithumb and Coinone on the 17th of this month and at the end of last month, respectively, and has started written evaluations.