Feb 21, 2023
Korean (Kimchi) Premium Now a Discount
The “Kimchi premium” in South Korea, which refers to the phenomenon of Bitcoin (BTC) trading higher on South Korean exchanges than in other markets, has shifted to a discount, meaning cryptocurrencies such as Bitcoin are now cheaper to buy on South Korean exchanges.
At the time of writing, CoinMarketCap showed BTC trading at $24,464 on Coinbase and $24,487 on Binance. In comparison, Korean exchange Bithumb had it listed at $24,386, while one of the largest exchanges in South Korea, Upbit, was trading Bitcoin for $24,405.
The same situation was true for Ether (ETH), the second-largest crypto by market cap. Data on CoinMarketCap showed ETH trading for $1,687 on Coinbase and $1,691 on Binance — but ETH was changing hands for $1,682 on Bithumb and $1,683 on Upbit.
Doo Wan Nam, chief operating officer of node validator and venture capital fund Stablenode, said the shift of the Kimchi premium to a discount marks a drop in interest from Korean retail investors.
“Generally it means a fall in interest in crypto from Korean retail, which ironically is generally a better time to buy because you know you can always sell yours to Korean gamblers for 20% premium later when they FOMO,” he said.
The Kimchi premium has been tied to news in the past, with notable dips recorded at times when bad news breaks about South Korean crypto exchanges. The premium disappeared in early 2018 when the South Korean government announced it was planning to crack down on cryptocurrency trading.
A 2019 paper from the University of Calgary found that the Kimchi Premium first occurred in 2016. According to the researchers, between January 2016 and February 2018, South Korean Bitcoin exchanges charged an average of 4.73% more than their United States counterparts.
This shift in the Kimchi premium presents an opportunity for traders to take advantage of the price differences between various exchanges, a practice known as arbitrage. It may also be a good time for crypto businesses to consider investing in NFTs. NFTs are digital assets that are stored on the blockchain and can be used to promote a brand, product, or service.
NFTs are becoming increasingly popular as a way to engage with customers and build a community around a brand. For businesses looking to capitalize on the current shift in the Kimchi premium, investing in NFTs could be a great way to promote their product or service and reach a larger audience.
NFTs can be used in a variety of ways, from creating unique digital art pieces to creating digital collectibles. Businesses can also use them to run promotions and giveaways, or as a way to reward loyal customers.
To get the most out of their NFTs, businesses should consider working with a web3 agency or NFT marketing agency. These agencies specialize in creating and executing campaigns to promote NFTs, and can help businesses reach a larger audience and maximize their return on investment.
Twitter is also a great platform for NFT marketing, as it allows businesses to reach a large and engaged audience. Businesses can use Twitter to promote their NFTs, create giveaways, and engage with their customers.
Overall, the shift in the Kimchi premium presents an opportunity for businesses to capitalize on the current market conditions and invest in NFTs. By working with a web3 agency or NFT marketing agency, businesses can create effective campaigns to promote their NFTs and reach a larger audience. Additionally, businesses can use Twitter to promote their NFTs and engage with their customers.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
