Paycoin jumps 27-fold on bitcoin integration by paycoin app

The logo of Pay Protocol, a cryptocurrency project supported by fintech company Danal. [PAY PROTOCCOL]

The price of paycoin, a cryptocurrency used on the payments and remittance app Paycoin run by Danal Fintech, rose by 2,700 percent on Wednesday after the announcement that the app will integrate bitcoin.

Paycoin, a simple payment mobile app for cryptocurrency, announced that users can start paying with bitcoin at 60,000 of Paycoin's merchant affiliates including convenience stores, CU and 7-Eleven, as well as Domino’s Pizza. Even if the stores do not support transactions using bitcoin, they can convert their bitcoin into paycoin when paying through the app. Previously, users could only use paycoin for transactions.

After the news, paycoin’s price jumped from 195 won per coin to 5,310 won on Wednesday. As of 4 p.m. Thursday, paycoin’s price was down to 2,700 won.

On Wednesday, bitcoin surpassed 50 million won ($45,100) for the first time in history. Bitcoin’s price has been rising rapidly, especially as possibilities have been growing for the cryptocurrency to be used by major global companies like Tesla.

Software developer Danal Fintech is a subsidiary of fintech company Danal, whose stock hit the upper price limit for two days straight. Danal’s stock closed at 8,680 won, 29.94 percent higher from the previous day’s close.

Local investors are expressing mixed opinions about the recent cryptocurrency craze. Those who consider the rise positively say that it marks a new beginning for the digitization of currency, adding that it is only the beginning of cryptocurrency’s rise. However, critical voices say that cryptocurrencies without much value, the so-called alt coins, are gaining traction as well.

BY PARK SANG-HYUK, LEE JEE-YOUNG [lee.jeeyoung1@joongang.co.kr]