Altcoins Continue to Benefit From the So-called “South Korea Effect”
South Korean trading platforms affect cryptocurrency valuations in many different ways. Not just because of the premium trading value, but also the sheer volume in general. It is evident getting listed in South Korea is the main priority for altcoins these days. Their value tends to soar when it happens, regardless of working tech under the hood.
The Importance of South Korea
Ever since Chinese regulators made CNY-based trading impossible for cryptocurrrency enthusiasts, new markets have shot to the forefront. At first, we saw Japan make a meaningful impact in this regard. Once the Western world got back to its feet, Bitfinex and consorts started to increase their overall volume as well. All of these attempts are valiant in their own way, yet only represent a drop in the bucket. Especially when it comes to altcoin trading, there is only one region that matters.
More specifically, South Korea is a safe haven for altcoin trading right now. The country’s big and smaller exchanges always make an impact in this regard. Any new coin listed in this part of the world will undoubtedly shoot up in value for a while. Although these are usually pump-and-dump cycles, it shows the “ripple effect” is very real in the altcoin world. Whether or not this is a positive development, is a different matter altogether.
In a way, South Korea is a boom for the cryptocurrency industry. While the region is home to premium trading values for all currencies, it also carries a lot of weight in general. Any regulatory decision made in that country impacts the entire industry, for better or worse. In the end, South Korea has become the new powerhouse of cryptocurrency trading and speculation.
Altcoins Thrive due to Hype
For altcoins which get listed on South Korean platforms, these developments usually result in major price gains. Storm recently got listed and is soaring as we speak. The same is happening to ICON as of right now. Ethereum Classic also gets a nice “pump” from South Korea every now and then. It is clear these are never long-term gains, yet it also highlights the power this country has over the market.
Rest assured this trend will continue for quite some time. Even the Bitcoin price is affected by South Korea in a big way. Right now, one BTC is valued at $8,800 globally. In Korea, it is worth $8,986 whereas the rest of the world is still behind a bit. This premium price is not new in this industry either. Chinese exchanges maintained a 10-15% premium for the longest time.
It is evident cryptocurrency would not be where it is today without South Korea. This country is also partially the reason why we saw such massive price gains throughout 2017. Whether or not this cycle will repeat itself, is a different matter. So far, the year 2018 has been quite problematic for all currencies. Some experts still expect to see Bitcoin hit $29,000 by year’s end. Only time will tell if that prediction will come true. More importantly, it remains to be seen what role South Korea will play in that regard.