The Wealth Effect Brought by the South Korean Exchange Upbit

South Korea has always been a significant player in the

cryptocurrency

industry, ranking among the top four in terms of trading volume worldwide. This Asian nation has established a prominent position in the digital asset space, and its market has had a profound impact on the global cryptocurrency market.

In the current market conditions, when a token is announced to be listed on the Upbit exchange in South Korea, it is generally considered a positive development. Typically, tokens that are announced to be listed on Upbit experience a significant price increase. For example, let's take a look at three recent tokens that were listed on Upbit: Mina, GLMR, and STG.

Mina

GLMR

STG

The above chart shows the prices of the corresponding tokens on the Binance exchange. From the chart, it's evident that the prices of these tokens experienced significant increases shortly after the news of their listing on Upbit was announced. Moreover, when these tokens were initially listed on Upbit, their prices on Upbit were often considerably higher than on other exchanges.

Why is being listed on Upbit considered “positive”？ Why is there a price difference between Upbit and other exchanges？

• High Investor Enthusiasm:

  According to data from the industry tracking organization Coinhills, South Korea is one of the world's largest cryptocurrency trading markets. The South Korean Won is the third-largest global currency for Bitcoin trading, following only the US Dollar and the Euro. Data shows that, on average, one out of every five South Koreans participates in cryptocurrency trading, and the number of South Koreans involved in cryptocurrency trading continues to grow.

• User Habit Differences Leading to Price Differences:

  Many South Korean users prefer trading on South Korea's compliant exchanges and have a habit of speculating in closed markets. This includes trading during the listing and delisting of tokens, as well as during exchange maintenance periods. As a result, when a token is listed on Upbit, it attracts a significant number of South Korean investors. Price differences between Upbit and other exchanges create arbitrage opportunities, attracting short-term investors from other countries.

In summary, if a token announces its listing on the Upbit exchange, it is typically viewed positively by the market. Typically, the price of the token experiences significant fluctuations within a very short period, with prices on Upbit initially being higher than those on other exchanges, creating arbitrage opportunities.