Tron is up 66.5% this week, consolidating gains after South Korea's failed power grab and martial law highlighted its popularity in that market.
South Korea’s President Yoon Suk Yeol declared martial law on live television on Dec. 3. He claimed that the opposition sympathized with North Korea and declared the activities of the National Assembly (the country’s parliament), other political activities, protests, and demonstrations illegal while also putting media under military control.
This was followed by the military storming the National Assembly in an unsuccessful bid to stop them from voting for the annulment of martial law. After the vote to cancel martial law was successfully concluded, the military dispersed, and the country’s Cabinet lifted martial law just hours after its establishment.
Tron is up 66.5% this week, consolidating gains after South Korea's failed power grab and martial law highlighted its popularity in that market.
Bitcoin and XRP Prices Plunge in South Korea as President Declares Martial Law
The price of Bitcoin tumbled Tuesday on Upbit, South Korea’s largest crypto exchange, falling as low as $61,600 as the country’s president, Yoon Suk Yeol, declared martial law. The measure, which was announced by Yoon in a late-night television address, came alongside accusations that South Korea’s main opposition party was sympathizing with North Korea, per CNN. Yoon reportedly accused the party of “clear anti-state behavior aimed at inciting rebellion.” Priced in South Korean won, Bitcoin’s va...
South Korea’s President Yoon Suk Yeol declared martial law on live television on Dec. 3. He claimed that the opposition sympathized with North Korea and declared the activities of the National Assembly (the country’s parliament), other political activities, protests, and demonstrations illegal while also putting media under military control.
This was followed by the military storming the National Assembly in an unsuccessful bid to stop them from voting for the annulment of martial law. After the vote to cancel martial law was successfully concluded, the military dispersed, and the country’s Cabinet lifted martial law just hours after its establishment.
The impact of this sudden chaos on the crypto market was significant, especially considering that South Korea is home to one of the largest and most reactive retail cryptocurrency markets where Bitcoin is so popular that due to strict capital controls, it often trades at a significant premium.
Bitcoin 'Kimchi Premium' Is Back as BTC Price Spikes in South Korea
The “Kimchi Premium” is back. As the price of Bitcoin soars, the digital asset is more expensive in one place in particular: South Korea. Named after a popular dish in the Asian country, the “Kimchi Premium” refers to higher prices for Bitcoin—and other cryptocurrencies—on Korean exchanges. And yesterday, the premium marked its highest in two years, data firm CryptoQuant told Decrypt. “The premium on Bitcoin’s price in [South] Korea has hit a 10% increase, marking its highest in two years,” t...
The capital flight from South Korean crypto exchanges that ensued saw major involvement on Tron’s part. Nick Cowan, group CEO at VLRM Capital Management, told Decrypt that “Tron saw enormous buying on the same day, rallying from a low of 200 KRW to a high of 650 KRW, indicating some aggressive switching!”
Jan Gobeli, quantitative researcher at Keyrock, told Decrypt that an analysis of the liquidity withdrawn from leading local exchanges UpBit and Bithumb shows “that Tron is one of the most used chains for these transactions.”
Bithumb saw Tron be the most used chain, with over $5.83 million withdrawn through the network. On UpBit Tron was the top choice after Ethereum, with nearly $3.8 million withdrawn. This is about half of a percent of the 24-hour volume reported on the morning of Dec. 3, according to CoinMarketCap data.
Still, Gobeli suggested that South Korean buyers driving Tron price to fuel their capital flight is not as clear cut as it might first appear. He highlighted that “even though the price increased significantly, we didn't see any indication of buying pressure coming from [top South Korean exchange] Upbit but rather net selling.”
“I can’t confirm that Tron was the major asset used, but the charts would indicate major activity,” Cowan concurred.
Edited by Stacy Elliott.
