In this data-driven analysis, we explore South Korea's cryptocurrency landscape through the lens of its centralized exchanges. According to the Korean Financial Intelligence Unit (KoFIU), the country is projected to reach 6 million crypto investors by mid-2023—a staggering figure representing over 10% of the population.
Key Insights:
Dominance of Centralized Exchanges
- Korean investors primarily engage via platforms like Upbit, Bithumb, Coinone, and Korbit.
- Despite global trading volume declines, Korean exchanges saw a 37% month-on-month surge in July 2023, fueled by events like Ripple’s partial legal victory against the SEC.
Upbit’s Monopoly
- Upbit commands 80% market share, while competitors like Bithumb (15–20%) and Coinone (3–5%) trail far behind.
- Unique to Upbit: Korean investors heavily trade "Kimchi coins" (e.g., Loom Network, eCash), which are scarcely traded globally.
Bithumb’s Zero-Fee Experiment
- Bithumb’s October 2023 zero-fee policy briefly boosted its market share to 20%, but sustainability concerns persist due to lost revenue streams.
Risk-Taking Culture
- Compared to Coinbase’s institutional-driven trades (85% of volume), Upbit’s retail investors favor high-risk altcoins, reflecting Korea’s appetite for volatile assets.
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FAQ Section
Q: Why do Korean exchanges show resilience amid global downturns?
A: Local retail enthusiasm and rapid response to news (e.g., Ripple’s case) drive volume independently of global trends.
Q: What are "Kimchi coins"?
A: Altcoins like LOOM and XEC, predominantly traded in Korea due to local exchange policies and investor偏好.
Q: How does Tron’s network fit into this ecosystem?
A: Korean investors prefer Tron for its low fees—daily USDT transactions hit 2 million, dwarfing Ethereum’s 100,000.
Market Outlook
Korean crypto dynamics highlight a divergence from global trends, emphasizing the need for region-specific GTM strategies. With altcoin trading thriving and institutional interest growing, the market remains a hotspot for high-reward—but high-risk—opportunities.