Solar (SXP) and icon (ICX) tokens are now popular bets for South Korean traders.
Both tokens have rallied by as much as 40% in the past 24 hours with hundreds of millions of dollars in trading volumes on local South Korean crypto exchanges.
In both cases, trading volume exceeded market value: SXP had a market capitalization of $455 million at writing time on Tuesday, while icon’s capitalization was just under $350 million.
The payments-focused blockchain Solar Network is the rebranded main network of Swipe, which was previously a debit card provider. Binance, the world's largest crypto exchange by trading volume, purchased Swipe in 2020. Last week, Binance said it will support a token migration of SXP in the coming days – which may have buoyed recent interest.
South Korean crypto traders have a record of pushing euphoric rallies on tokens. The so-called Kimchi Premium originates from the region. That's when the price of bitcoin on local exchanges can trade as much as 30% above the price on international exchanges.
Last week saw a similar rally in XRP: Upbit led global XRP trading volumes with more than $790 million worth of tokens traded over a 24-hour rolling period on March 30.
Still, there's reason to treat the figures with caution. Some of the volume may be attributable to wash trading, a manipulative technique in which traders continually buy and sell the same asset to drive up volume to create a false impression of market activity.
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