When it comes to South Korea, the first thing that comes to mind is the developed entertainment and cultural industry? cosmetic technology? Is it kimchi? Or the origin of the universe?
However, behind these familiar labels, there is a title that is not well known to the public: the country of currency speculation.
South Korea is currently almost the status quo of the whole people’s currency speculation, we might as well look at a set of data:
- According to the Times Weekly, 1 in 5 young Koreans is speculating on Bitcoin. This conclusion is supported by data.
- According to the Korea Financial Services Commission (FSC), there are 3.08 million young people aged 20-39 who speculate in cryptocurrencies, accounting for 23% of the population of this age group (13.431 million) , accounting for nearly one-fifth.
- In the first quarter of this year, 2.5 million new accounts were added on the four major virtual currency exchanges in South Korea alone, and more than 60% of the new users were young people.
Why are young Korean groups keen to speculate on coins? There are more social and economic reasons behind this strong mentality of getting rich.
The bottom-level society in South Korea is more complicated than imagined. High consumption, high housing prices, class solidification, and the pressure of employment have put many young people on the road. Not only does South Korea have a low employment rate, but due to the monopoly of chaebols and capital, it also makes ordinary people suffer. The road to entrepreneurship is extremely difficult, and the government’s inaction on virtual currency management has further aggravated this phenomenon.
Young people can’t see the upward channel, so they can only pin the last chance to cross the class in the currency circle. There have been media reports that 1/4 of South Korean college students have participated in currency speculation.
With the intensification of the bear market, it is not only the market that collapses, but also the mentality of young Koreans.
So what is the Korean crypto market like?
According to the “Analysis by the Financial Intelligence Unit of Korea (FIU)” report, as of December 31, 2021, 29 crypto exchanges in South Korea have passed the FSC release, of which only 4 major exchanges have established real-name accounts with banks to legally provide the “Korean Won”. Fiat Transactions”.
The domestic market in South Korea is centered on the Korean won trading market, accounting for 95%, and supporting currency trading only accounts for 5% .
From the above data, it is not difficult to see that the Korean exchanges are basically 4 monopolistic (you can enter and withdraw gold in Korean won), these four exchanges are: UPBIT; Bithumb; Coinone; Korbit .
There are a total of 1,257, 623 types of virtual assets on the Korean exchange, of which 403 are separately listed virtual assets.
More than 65% (403) of the currencies are listed independently, and about half (219) of the MDDs have fallen by more than 70% from the peak, with a high risk factor;
Let’s look at the difference in the proportion of trading currencies in the global market vs. the Korean market. The overlap is only 50%; the overlapping currencies are mainly BTC, ETH, XRP, ADA, SOL.
We compare the shares (market capitalization) of Bitcoin and Ethereum in various trading markets, and it is not difficult to see that the mainstream virtual assets in the Korean market account for a relatively low proportion, and the non-mainstream independent listing virtual asset investment accounts for a relatively high proportion;
Global market 59% > KRW market 27% > Currency market 9%
Judging from the currency transactions of UPBIT, the number one exchange in South Korea, compared with international mainstream exchanges, the share of non-mainstream currencies is very large;
Figure data from coingecko 6.23, 2022
Here we can draw a conclusion that there is still a big gap in the currency preferences of the Korean VS Global market. Let’s take a look at user analysis and per capita assets;
The total number of registered users of domestic exchanges in South Korea is 1,525w, and the actual trading users are 5.58 million, accounting for about 10% of the total population of South Korea. The age group is mainly distributed between 20-40 years old.
30 years old (31%) > 40 years old (27%) > 20 years old (23%) > 50 years old (14%) > 60 years old (4%)
Male (67%): Female (33%) ≈ 2:1
The number of daily transactions per capita is 4 times, 75w won (580u) / time
56% below USD 800; 29% between USD 800-8,000; 15% above USD 8,000;
1. The South Korean trading market is dominated by the Korean Won (KRW) transaction; the four major exchanges are monopolized and monopolized, with a total scale of 55.2 trillion won ($45.9 billion)
2. The average MDD of the Korean won market is 59%, and the average MDD of the currency market is 71%
3. Compared with the global market, the proportion of mainstream virtual assets in the Korean market is relatively low, and the proportion of non-mainstream independent listed virtual assets investment is relatively high;
4. 30-year-olds are the main currency speculators in South Korea; however, those under 20 also account for a larger proportion of 23%
In such a high-risk market, what is more terrifying than losing money is that high-leverage, high-risk virtual currency transactions will destroy an ordinary person’s view of money. It has become a gambling market, and it has made many Korean young people addicted.
The bear market during this period has also made many young people in South Korea who have just entered the society to bear debts early. From another point of view, this is not a bad thing, because the young still has the chips to start over.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-status-quo-of-the-virtual-currency-trading-market-in-south-korea-20-30-years-old-are-the-main-crowd-speculators/
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