South Korea’s “Kimchi premium” has unveiled a discount again. It is believed that cryptocurrencies such as Bitcoin will be low-priced for making purchases on South Korean exchanges, as stated by Cointelegraph.
According to Cointelegraph, Kimchi premium means when Bitcoin price is traded at a higher amount in South Korean exchanges compared to other markets. Insights from CryptoQuant, a blockchain analytics provider, stated that the Korea Premium Index has been ranging between -0.24 and 0.01 for February 17 and 19, 2023.
On the basis of information by Cointelegraph, Korean exchange Bithumb had it listed at $24,386, while South Korean exchange Upbit showed Bitcoin trading at $24,405. Doo Wan Nam, chief operating officer, Stablenode, a node validator and venture capital fund, mentioned that Kimchi premium transitioning to a discount shows a fall in interest from Korean retail investors
“Generally it means fall in interest in crypto from Korean retail, which ironically is generally a better time to buy cause you know you can always sell yours to Korean gamblers for 20% premium later when they FOMO,” Nam said.
Moreover, Cointelegraph noted that previously, the volume of Kimchi premium witnessed fall in its value when bad news broke about South Korean crypto exchanges. Sources suggest that the premium departed in early 2018, post South Korean government revealing its aim to stop cryptocurrency trading.
(With insights from Cointelegraph)
