A well-known gas station in Daeman has disclosed staggering losses exceeding 1.1 billion won (approximately $830,000) over six months due to its exclusive acceptance of Bitcoin payments.
Crypto Venture Turns into Financial Nightmare
Jeffry Hwang, the Korean-American proprietor of the station in Amho Hwapyeong, launched the business with an innovative policy: transactions solely in cryptocurrency. This approach, leveraging Bitcoin and similar assets, aimed to attract tech-savvy customers but quickly unraveled amid volatile market swings.
Analysis reveals the station expanded from 25 to 40 pumps, fueled by aggressive leveraged trading on platforms like Hyperliquid. In January alone, it recorded 262 pure crypto sales, with Hwang even dubbing them customer specials like “pure hope.”
Scale of the Damage
Over the period, the station inputted 7,519 million won (about $5.7 million) in pure crypto sales but suffered 4,484 million won (roughly $3.4 million) in missed profits from liquidations. Blockchain analytics platform Akam noted a remaining deposit of 30 million won ($22,700), questioning the strategy’s sustainability: “Is there no limit to chasing highs?”
Officials confirm the policy’s rigid focus on crypto—eschewing fiat entirely—amplified risks in a bearish market. Hwang grabbed 335 pure sales overall, yet repeated leveraged positions led to devastating wipeouts.
Industry Warnings on Crypto Risks
Market observers highlight this as a stark example of leveraged crypto trading’s perils for businesses. “Such massive losses stem not from single errors but repeated high-risk plays without safeguards,” one analysis states.
Experts urge caution: “Unmanaged drug-like addiction to leverage can turn promising ventures pathetic.” The station’s experience underscores the dangers of tying real-world operations to digital asset volatility.
Despite the setbacks, the bold experiment drew attention in Seoul’s Gangnam district, where a Bitcoin fueling station photo captured early buzz on March 5.
