The kimchi premium breaks $1,000! South Korea’s "disfigured alcohol addiction" has another episode?
The quiet year's kimchi premium once again swayed, and it was a bit like the scene before the bull market in 2017.
Kimchi reflects the Koreans' addiction to food, and the kimchi premium reflects to some extent the Koreans' addiction to the fried coins. Recently, bitcoin has broken through, and their "addiction" seems to have returned.
Coindesk reported that Bitumumb, the largest cryptocurrency exchange in South Korea, had a bitcoin offer of $1048 higher than Coinbase last Sunday. The Bithumb bitcoin “Kimchi premium” hit a new high since February 24, 2018. According to the inquiry of the onion, the bitcoin spread of the two exchanges is still as high as 650 US dollars.
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South Koreans are keen on cryptocurrency investments, and Korean mainstream cryptocurrency exchanges often quote higher prices than other exchanges. This phenomenon is known as kimchi premium, which is mainly found in exchanges such as Bithumb and Upbit.
The kimchi premium first appeared in the bull market at the end of 2017. In January 2018, the kimchi premium entered the most frenetic period. At that time, the price of bitcoin in the Bithumb and Upbit exchanges in Korea was $21,751 and $22,674, respectively, 40% higher than the price of Coinbase $15,255. Such a high price difference has also made South Korea the best place to move bricks and arbitrage.
After that, the cryptocurrency market entered a bear market, and the kimchi premium phenomenon began a period of silence for a year. In May this year, the market rejuvenated, and the Korean kimchi premium seems to have begun to make a comeback again, and its trend is very similar to that of the 2017 bull market.
The Korean bitcoin kimchi premium seems to fit very well with the market's macro trend, which also reflects the market's popularity to a certain extent.
But why does the kimchi premium often appear in Korea? The core reason may be that the Korean cryptocurrency market is in short supply.
The frenzy and supply in the Korean market
In September 2017, the Korea Financial Services Commission (FSC) stated that it would ban ICO financing. The South Korean government has also imposed policy restrictions on capital controls in the field of cryptocurrency. The Korean exchange is also very cautious and pays great attention to investor protection.
However, this series of regulatory policies has not long reduced the enthusiasm of the Korean market for cryptocurrencies, but also makes the pessimistic types of Tokens in the Korean market less. The scarcity of the cryptocurrency market is prominent, and the phenomenon of market demand is becoming more and more obvious.
South Korea was once considered the most active cryptocurrency investment market in Asia. According to the statistics of KOISS of the Korean Statistical Office, in September 2018, there were more than 4.5 million Korean coins, accounting for one-tenth of the total population of 50 million, of which more than 72% were young investors. Moreover, a report by the Bank of Korea in September last year stated that Korean crypto asset investors are mainly individuals rather than financial institutions.
At the end of 2017, the global cryptocurrency market entered a bull market. The pre-repression status of the Korean market was released. Investors rushed to the market. At the time, the price of kimchi in the Bithumb and Upbit exchanges reached 40%. Since then, many of the world's currency players have targeted the "camp" of South Korea's brick arbitrage market.
However, the market's excessive enthusiasm also led to "regulation is forced". In January 2018, the South Korean government decided to start suppressing speculation in the market. With the arrival of the 2018 elder bear, the enthusiasm for market transactions plummeted. Thus, after March 2018, the kimchi premium of the bitcoin in the Korean market almost disappeared.
Author: Long Yue, please indicate the source
Source: Shallot blockchain
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