I hope every investor can make a life-changing fortune on the blockchain. Didn't you? Perhaps it's because your chips have been sold off by the Korean market. In the profit and loss screenshots circulating in the blockchain circle, I have seen many cases of millions of dollars in profits, and even some of my friends have made a small profit. But if you don't touch Meme coins, it seems that you don't even have a ticket to enter.
In the past, it was widely believed that Korean investors only focused on trading on centralized exchanges (especially Upbit), and this perception made sense. But when there are 1,000x opportunities on the chain, who would stick to centralized exchanges?
Despite this, Upbit is still the second largest spot trading market for currencies like $DOGE and $SHIB. There was a saying in the market: "Don't ignore the crazy Korean buying." But today's Korean market does not seem to continue the previous style.
Where did the premium go?
In recent weeks, I have been looking at the Korean market premium as a barometer of market sentiment - when the premium reaches +10%, it usually means that the market may stabilize. However, this time, the situation is a little different. Investors in the subway check their Binance accounts, and friends around them discuss $DOGE, but the premium has never appeared.
In the past, when the price of Bitcoin reached $90,000, the premium in the Korean market could even reach double digits. Now, even with the surge in trading volume, the premium is difficult to reproduce. What is the problem?
USDT listing
After Upbit introduced USDT in June 2024, investors no longer need to transfer funds through complicated paths such as $TRX and $XRP, making premium arbitrage more efficient and direct.
Macro market environment
As the South Korean won weakens, investor interest in U.S. dollar assets has increased significantly, and USDT trading volume has climbed rapidly. In contrast, trading pairs denominated in South Korean won are losing appeal.
The impact of regulatory policies
The implementation of the (Virtual Asset User Protection Act) has increased compliance pressure in the Korean market and placed market behavior under stricter constraints.
Is the disappearance of premium a good thing or a bad thing?
From an investment equity perspective, the lower premium gives Korean investors a price closer to the global market. However, it also deprives market watchers of an important indicator used to judge the peak of the bull market.
At the same time, the strengthening of supervision has also reduced investors' trust in centralized exchanges. South Korea's financial regulators have suggested that exchanges be allowed to pre-freeze accounts, and the city of Paju has even directly sold the crypto assets of those who default on their taxes, which has further exacerbated capital outflows. Investors' concerns are obvious: once the funds are frozen, it is meaningless to make more money.
Future Outlook
The disappearance of the premium in the Korean market may be a sign of market maturity, but it also reflects the trend of funds flowing to the chain. In this trillion-dollar market, if funds cannot flow freely, any restrictions will be counterproductive.
One of the core values of cryptocurrency is decentralization and freedom. In an environment that emphasizes control, market vitality and attractiveness will inevitably be suppressed. If these high-control measures continue, more funds will flow to the chain, which will weaken the market ecology that regulators are trying to protect.
