- Reports suggested that the Korean Kimchi Premium flipped to a discount.
- Analyst Doo Wan Nam tweets that the time is perfect for investors to earn profit by buying coins at cheaper prices.
- There are notable changes in the prices of BTC and ETH on Korean and other exchanges.
Doo Wan Nam, the co-founder and the Chief Operating Officer (COO) of the Node validator and venture capital fund StableNode commented that the discount on the Korean Kimchi Premium marks a better time for investors to buy the cryptocurrencies as they can be sold to the “Korean gamblers for 20% premium later when they FOMO.”
At midnight, on 20 February, Nam tweeted that Korean (Kimchi) Premium is now turned into Korean Discount:
Notably, the term Kimchi, referring to a Korean dish, designates the difference between the prices of cryptocurrency in Korean exchanges and foreign exchanges.
It has been revealed by the blockchain analytics platform CryptoQuant, that the Korean Kimchi Premium has drowned to discount, marking an easier time for crypto users to buy cryptocurrencies including Bitcoin at cheaper rates. According to the report, the Premium index has been oscillating between the -0.24 and 0.01 range since February 17.
While taking the example of the leading cryptocurrency Bitcoin (BTC), it is understood that BTC has been trading at a price of around $24,464 on the exchange Coinbase and $24,487 on Binance. At the same time, the Korean crypto exchanges Bithumb and Upbit trade BTC at $24,386 and 24,405 respectively.
Significantly, the second largest cryptocurrency, Ether (ETH) also showed a substantial difference in its price while traded at the Korean exchanges and other foreign exchanges.
As per the reports, Coinbase has been selling ETH at roughly $1,687 and Binance at $1,691, while on Bithumb, the price of ETH is $1,682, and on Upbit, $1,683.
Interestingly, the time could be perfect for “arbitrage”, a practice by which the traders try to earn profit by trading the price differences between different exchanges.
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