0.000508 won per unit…Dozens of 'decimal point coins' that aren't even penny stocks

0.000508 won per unit…Dozens of 'decimal point coins' that aren't even penny stocks

Coins with a unit price of less than 1 won: Bithumb and Coinone 26, Upbit and DigitalX 8

When investing in altcoins, look at market capitalization and trading volume rather than unit price… "Beware of investment losses"

It has been revealed that more than 30 so-called 'decimal point coins (virtual assets)' with a price of less than 1 won per unit are traded on domestic virtual asset exchanges.

According to the virtual asset industry on the 28th, among the coins supported for trading (listed) on the four major domestic virtual asset exchanges (Upbit, Bithumb, Coinone, DigitalX), there were 39 coins (excluding duplicates) with a price of less than 1 won as of 4:10 PM on the 24th.

By exchange, Bithumb and Coinone each had the most decimal point coins with 26, while Upbit and Korbit each supported 8 for trading.

The reasons why coins became decimal point coins varied greatly.

Some coins consistently had a price of 1 won or less for several years since being listed on domestic exchanges, while others dropped below 1 won after their price fell by more than 99%.

Coin A, listed on Coinone in November last year, rose to 143.3 won on the same day, but its price steadily declined, becoming a decimal point coin since July.

This coin was designated as a 'cautionary trading item' on Coinone, and on the afternoon of the 24th, it showed a volatility of over 40% despite a trading volume of only around 30,000 won.

However, not all coins with low unit prices had high volatility or low trading volume. On the contrary, some coins attracted attention from investors as 'yeopjeonju' (a term for very cheap stocks, similar to penny stocks but with a connotation of being almost worthless).

Upbit and Bithumb had no decimal point coins with a daily trading volume of '0 won', and more than half of the decimal point coins on Coinone and DigitalX were traded at least once a day.

In the stock market, regulations for delisting so-called 'penny stocks' (stocks priced below 1,000 won) and stocks below market capitalization standards were strengthened in July to quickly remove financially unsound companies.

Domestic virtual asset exchanges also refer to self-regulation and terminate trading support for virtual assets that do not meet market capitalization or trading volume standards after a monitoring period.

However, unlike the stock market, the unit price per coin is not included in the monitoring criteria in the virtual asset market, which seems to allow many decimal point coins to be traded.

Experts advise that there is no difference between a coin with a low unit price and other altcoins, and the economic scale of a coin should be judged by market capitalization, trading volume, and liquidity rather than unit price.

Yoon Seung-sik, head of Tiger Research Center, said, "Coins with a low unit price might be aiming for psychological and marketing advantages (by the issuer)," adding, "The economic scale of a coin is determined by the unit price multiplied by the circulating supply, which is the market capitalization."

Kim Min-seung, head of DigitalX Research Center, also explained, "Most coins, including Bitcoin, can be divided into 8 decimal places or more," and "I understand that overseas exchanges also consider market capitalization, not the unit price of a coin, for maintaining trading support."

At the same time, when investing in decimal point coins and other altcoins, it is essential to check the diluted value, demand, and liquidity.

Center Head Yoon Seung-sik warned, "Even if a coin's unit price is 1 won, if the supply is excessive or liquidity is insufficient, it can surge with a small buying force and then lead to significant losses," urging caution.