Why are South Korean crypto traders experiencing losses?

South Korean crypto traders are experiencing losses due to a market downturn that began in October 2025, exacerbated by a surge in altcoin supply and general market volatility.

What is the "exit-crypto" movement in South Korea?

The "exit-crypto" movement refers to South Korean investors growing tired of crypto and shifting their capital back to traditional assets like stocks after experiencing significant financial losses.

How has the shift from crypto to stocks affected trading volumes in South Korea?

Trading volume on the Kospi index surged by 221% in January, while trading on Korean crypto exchanges fell by approximately 65% during the same period, indicating a clear shift.

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South Korea's Crypto Exodus: Retail Flees to Stocks

11 Feb

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Summary

Traders share losses on forums; a stark reversal for crypto adoption.
Altcoins have been hit hard, with token supply exploding since 2024.
Monthly Kospi trading surged 221% while crypto exchange volume fell 65%.

South Korea's Crypto Exodus: Retail Flees to Stocks

South Korea, once a leader in cryptocurrency adoption, is now witnessing a significant "exit-crypto" movement. Traders are increasingly expressing frustration on social media platforms over substantial losses, with some reporting devastating outcomes including divorce and the loss of their entire fortunes. This marks a dramatic reversal for a nation that had enthusiastically embraced Bitcoin and other digital coins.

The downturn is particularly acute for altcoins, which have been heavily impacted. The number of available tokens surged dramatically, contributing to their volatility and leading to feelings of being "ripped off" among retail investors. These investors, once known as "ants" for their unified market influence, are now retreating.

As crypto markets slumped by nearly $2 trillion after reaching record highs in 2025, Korean retail capital has flowed back to traditional assets. Korean stocks have hit record highs, outperforming cryptocurrencies. Monthly trading volume on the Kospi index surged 221% in January, while trading on Korean crypto exchanges plummeted by 65% over the same period.