Catenaa, Saturday, December 06, 2025-South Korean crypto exchange Upbit recorded a sharp spike in trading activity and revenue following a $36 million hack, driven by a phenomenon known locally as “fence pumping.”
Trading volume on Monday surpassed $2 billion, a 27.5% rise from the previous day, despite the security breach.
Fence pumping occurs when a platform suspends deposits and withdrawals, temporarily trapping user funds. The restricted access can amplify buying pressure, pushing token prices higher on the affected exchange.
Tokens such as Orca and Meteora, both Solana-based decentralized exchange assets, surged sharply on Upbit after the hack before reverting to global market levels. The price jumps generated substantial commission fees for Upbit, which collected over $340,650 in a single day, based on calculations by local media outlet TVChosun.
Fence pumping has been noted in South Korea since at least 2020. Analysts warn it creates artificial price movements, which can mislead investors and trigger short-term speculation across exchanges. Rival platforms including Bithumb have reported similar incidents following security disruptions.
Activity on Upbit dropped sharply in the early hours of December 2, with volume falling from $2.2 billion at 10:50 p.m. GMT on December 1 to $1.4 billion by 7:50 a.m. GMT the next morning. Experts say fence pumping does not automatically occur after every disruption and represents a speculative, high-risk market condition rather than an assured profit mechanism.
Market watchers advise caution, emphasizing that the South Korean crypto environment is uniquely prone to sudden, short-term price surges following operational interruptions.
