What Is the Kimchi Premium?

The Kimchi Premium is a term used to describe the difference in price between cryptocurrencies traded on South Korean exchanges and those traded elsewhere. This phenomenon has been observed since 2017, when Bitcoin prices began to skyrocket around the world but were significantly higher in South Korea than anywhere else. The premium can range from 10-30%, depending on market conditions and demand for certain coins.

This discrepancy is due to several factors, including the country’s strict regulations surrounding cryptocurrency trading, its large population of tech-savvy investors who are eager to get involved with digital assets, as well as its high internet speeds which make it easier for traders to access global markets quickly. Additionally, many Koreans view crypto investments as an attractive way of diversifying their portfolios away from traditional stocks and bonds. As such, they have become some of the most active participants in this new asset class – driving up demand and pushing prices even higher within their own borders.

See also  Proof-of-Burn (PoB)

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