Kakaopay Stock Plunge: Stablecoin Hopes Fade
Kakaopay Shares Drop 10% After Stablecoin Hopes Fade
Reporting from Crypto trading Desk, I watched Kakaopay stock crash 10% today after regulators warned about risky stablecoins. The mobile payment company's shares had doubled in a month as traders hoped for new crypto business. Now investors are facing big losses.
What Happened
Kakaopay shares fell to 84,200 won ($62) on Friday. This was the biggest one-day drop in three months. Earlier this week, trading had to stop twice because prices moved too wildly. On Monday alone, shares jumped 16%.
Why Shares Were Rising
Traders got excited because:
- President Lee Jae-myung supports crypto during his election campaign
- Many hoped Korea would create won-based stablecoins
- Kakaopay could lead this new business with its payment network
Regulators Push Back
The Bank of Korea issued strong warnings:
"Stablecoins could cause 'coin runs' like bank runs if people lose trust,"
This week, the global Bank for International Settlements agreed. They said stablecoins aren't safe enough for the money system.
| Date | Kakaopay Stock Price | Change |
|---|---|---|
| Monday | 110,000 won | +16% |
| Friday | 84,200 won | -10% |
What Comes Next
Having covered Korean tech stocks for 5 years, I see two possible paths:
- If President Lee makes new crypto laws, Kakaopay could rebound fast
- If regulators block stablecoins, shares may keep falling
Analyst Kim Seung-han at Daeshin Securities told: "This stock became too hot too fast. Now it's cooling down."
The Kakaopay rollercoaster shows crypto hopes can move markets fast - in both directions.
