- Korea’s crypto culture favors cryptocurrencies over decentralized finance (DeFi).
- Korea’s Bitcoin trading market solidifies its position as the third-largest globally.
- Koreans find DeFi inconvenient due to usability challenges and lack of user-friendly interfaces.
Ignas, a prominent figure in the decentralized finance (DeFi) space, recently released an insightful blog post that extensively explores the intricacies of the Korean crypto culture. In this comprehensive analysis, the esteemed researcher sheds light on Korea’s inclination towards cryptocurrencies rather than DeFi, highlighting the potential factors contributing to the country’s apparent disregard for DeFi.
In the July 13 publication titled “Korean Crypto Culture: Why Koreans Love Crypto, But Not DeFi,” Ignas highlighted the significant role of the Korean crypto market in Bitcoin trading, resulting in the remarkable phenomenon known as the “Kimchi Premium.” Inspired by a popular Korean dish, this term denotes the disparity in cryptocurrency prices between South Korean and international exchanges. Despite efforts to regulate the Kimchi Premium, the researcher affirms that enthusiasm for Bitcoin remains prevalent in Korea.
In 2022, Korea emerged as a formidable player in the Bitcoin trading landscape, solidifying its position as the third-largest market globally. With a substantial trading volume, Korea commanded an impressive 8.7% market share, trailing behind the United States and Japan. Leading the pack, the US maintained a dominant position with a 6.8% market share, while Japan secured the second spot with a commendable 11.3% share. This remarkable achievement highlights Korea’s growing significance in the cryptocurrency industry.
However, according to Ignas’ research findings, Koreans’ interest level in DeFi appears to be relatively low, despite the efforts made by prominent blockchain companies in the country. Ignas suggests that this could be attributed to the Koreans’ higher level of trust in the traditional financial system and their preference for centralized exchanges such as Upbit and Bithumb. He further explains that compared to centralized exchanges, DeFi presents certain challenges in terms of usability, including the complexities of setting up wallets, securing private keys, and managing withdrawals and deposits, which Koreans find “inconvenient.” Additionally, Ignas points out that DeFi applications lack user-friendly interfaces and experiences that cater to the Korean market.
Furthermore, Ignas emphasized that the intricacies of DeFi terminology can be convoluted and primarily cater to English-speaking individuals. He highlighted the necessity for comprehensive education within the ecosystem to grasp its nuances. The need for more educational resources in Korea may also contribute significantly to their disinterest in DeFi.
