2/7 We are seeing many inactive traders coming back. For example, on the oldest Korean exchange @korbit_official , we saw number of account reactivation skyrocketing. Monthly increase of 1744% in November of 2020 and saw 57% monthly increase in January. pic.twitter.com/U59HPgsGRq
— Doo (@DooWanNam) February 21, 2021
With the growing Kimchi premium, I did some digging on the BTC performance following previous spikes in the Korean BTC pair.
While it's impossible to say whether the Kimchi premium has peaked or if it will continue growing onwards, it makes me worried. pic.twitter.com/lx0YMQgLAr
— Vetle Lunde (@VetleLunde) April 5, 2021
Remember when the $BTC market collapsed with a 50% kimchi premium back in 2018?
Simply calculating the trading volume, the Korean market had 7.9% of the influence as of 2018 January, while today it is only 1.7%.
— Ki Young Ju 주기영 (@ki_young_ju) April 4, 2021
How the arbitrage works
To clarify, based on previous law cases, arbing crypto itself is not illegal in Korea. However, sending money abroad without reporting the government is a crime. Generally when it's over $1 million worth over the course of arbing. Here are some previous cases 👇
— Doo (@DooWanNam) April 5, 2021
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.