Overpayment on crypto exchanges in South Korea relative to global values has more than halved along with the decline in the price of bitcoin. Soon the so-called “kimchi premium” resumed to 15%.
Kimchi premium has started to nosedive. From above 23% to about 14% in just about five hours. Worth watching this closely pic.twitter.com/8Z4yKGQubs
– Larry Cermak (@lawmaster) April 7, 2021
According to The Block analyst Larry Cermak, the kimchi premium dropped from 23% to 14% within 5 hours, and the drop from 17% to 9% took 10 minutes.
AND we are below 10% … This has dropped from 17% premium to now around 9% in the last 10 minutes. Someone is making 10s of millions as we speak pic.twitter.com/6l2JPr6AeK
– Larry Cermak (@lawmaster) April 7, 2021
At the time of writing, bitcoin is traded on the South Korean crypto exchange Bithumb at $ 65,500. Thus, the “kimchi premium” has resumed to 15%.
The price of the first cryptocurrency on overseas trading platforms is $ 57,000, according to CoinGecko.
The “Kimchi premium” on Ethereum has exceeded 14%. At the time of writing, the price of the second cryptocurrency in terms of capitalization is $ 2024 on foreign exchanges and $ 2311 on South Korean ones in terms of US dollars.
The arbitrageurs cannot take advantage of the prevailing price discrepancy. According to The Block, bitcoin exchanges in South Korea are prohibited from opening accounts for foreign citizens, and foreign platforms do not support the first cryptocurrency paired with won.
The publication, citing a study by the University of Calgary, noted that from 2016 to 2018, the “kimchi premium” averaged 4.8%. At the maximum, the indicator reached almost 55%.
As a reminder, on April 5, 2021, the price of the first cryptocurrency on the South Korean exchanges reached $ 66,500 in local currency. Kimchi Premium exceeded 15%.
In 2019, ForkLog wrote that Bitcoin traded 3-5% higher in Asian countries than in other markets.
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