Kimchi’s premium value has changed to a discount once again. And that might tell you something about market sentiment. cryptocurrency At least in South Korea.
South Korean Kimchi Bonus Becomes Discount Again mean now Cryptocurrencies like Bitcoin are cheaper to buy on South Korean exchanges.
This phenomenon is named after the Korean food kimchi. Bonus Kimchi means when the price of Bitcoin
BTC
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$23,377
The South Korean stock market trades more than any other market.
According to data from blockchain analytics provider CryptoQuant, the Korea Premium Index was between -0.24 and 0.01 from Feb. 17 to 19.
while writing CoinMarketCap BTC is $24,464 on Coinbase and $24,487 on Binance.
By comparison, Korean exchange Bithumb is trading at $24,386, while Upbit, one of South Korea’s largest exchanges, is trading Bitcoin at $24,405.
The same goes for Ether, the second largest cryptocurrency by market capitalization.
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$1636
At time of writing, data from CoinMarketCap. It shows ETH trading at $1,687 on Coinbase and $1,691 on Binance, but ETH is changing hands at $1,682 on Bithumb and $1,683 on Upbit.
Doo Wan Nam, a node tester and head of venture fund Stablenode, said the shift from kimchi premiums to discounts shows waning interest from Korean retail investors.
“This usually means that Korean retailers are losing interest in crypto, which is usually a better time to buy. Because you know you can always sell yours to Korean players with a 20% bonus later when they get into FOMO,” he said.
Some traders try to make money by trading price differences between different exchanges. which is called speculation
RELATED: Korean regulators investigating more than $6.5 billion in banks involved in kimchi bonuses
In the past, the size of the kimchi bonus was linked to news and, in some cases, when there was bad news about South Korean cryptocurrency exchanges. There has been a noticeable decrease.
The bonus disappeared in early 2018 when the South Korean government announced plans to restrict cryptocurrency trading.
In 2019, a University of Calgary article showed that Kimchi Premium first appeared in 2016.
According to researchers, from January 2016, by February 2018, South Korean bitcoin exchanges charged an average of 4.73% more than US exchanges.
