A recent announcement by South Korean exchanges to review 600 tokens listed has sparked panic among investors, leading to a significant decline in altcoin prices. The review, set to begin next month, aims to ensure that tokens meet "transaction support best practices" listing standards, but has inadvertently fueled fears of potential delistings.

The upcoming Virtual Asset User Protection Act, set to take effect next month, has caused investors to panic and sell off virtual assets in droves. Rumors of potential delistings have circulated rapidly across social media and coin communities, leading to significant price drops for many altcoins. On the Upbit exchange alone, around half the coins traded against the Korean won saw declines between 10-20%.

The review criteria cover both formal and qualitative requirements, including the issuer's credibility, user protection, tech security, and regulatory compliance. However, financial authorities have clarified that they are not directly involved in conducting the reviews themselves, and that any announcements will come from the exchanges and the Digital Asset eXchange Alliance (DAXA).

The Financial Supervisory Service has urged investors to be aware of the risks, as many altcoin investors lack proper information about their investments. An official stressed the importance of responsible investing, warning that investors should consider risk factors and the sustainability of their investments. The exchanges have also reassured investors that mass delistings are unlikely, and that the recent price drop was due to investors overreacting ahead of the law's enforcement.

In conclusion, South Korea's token review has sparked a panic sell-off among investors, leading to a significant decline in altcoin prices. While the review aims to ensure that tokens meet listing standards, it has inadvertently fueled fears of potential delistings. Investors are urged to be aware of the risks and to invest responsibly, considering risk factors and the sustainability of their investments.