The South Korean Kimchi Premium has again moved towards discounts, which means that it is far easier for one to buy cryptocurrencies such as Bitcoin on South Korean exchanges. This phenomenon, as it can be understood, is named after Kimchi, the famous Korean dish.
For those who are unaware, the technical meaning of this phenomenon refers to the event when the price of Bitcoin is trading quite high on South Korean exchanges as compared to other markets. According to data that was provided by CryptoQuant, a blockchain analytics provider, the Korea Premium Index had been swinging wildly between the values of -0.24 and 0.01 range between the 17th of February and the 19th of February.
Kimchi Premium Moving Towards Discount In South Korea
According to CoinMarketCap, BTC was trading at a sum of $24,464 on Coinbase, and at a sum of $24,487 on Binance. In comparison to that, Bithumb- the Korean exchange, had it listed at around $24,386, while one of the largest exchanges in the country, Upbit, was trading the cryptocurrency for $24,405. The situation seems to be pretty similar for Ether- the second-largest crypto by market cap- as well.
CoinMarketCap showed ETH trading at $1,687 on Coinbase, and a sum of $1,691 on Binance- but ETH had been trading hands for $1,682 on Bithumb and $1,683 on Upbit. According to the Chief Operating Officer of Stablenode, Doo Wan Name, the drop of Kimchi Premium to a discount does mark a major drop in interest from the retail investors in Korea.
Previously, the size of the Kimchi Premium had been a matter of national news, with certain dips during periods of time considered to be bad news for the crypto exchanges in the country. The premium did disappear for a brief period of time in early 2018 when the government in the country had planned to crack down on the trading of cryptocurrency.
