As Ethereum (ETH) steadily approaches its all-time high (ATH), some industry leaders believe that the second-largest cryptocurrency by market capitalization is not entirely benefiting from organic demand. Rather, it is being “propped up” by Korean investors looking to make a quick buck.
Specifically, Mow stated that approximately $6 billion worth of Korean retail capital is supporting Ethereum prices. Mow blamed ETH influencers who are reportedly traveling to South Korea to market the digital asset to retail investors.
In addition, the founder of AQUA Wallet said ETH investors are not fully aware of the ETH/BTC chart, and are under the false impression that they are buying the “next Strategy.” He cautioned that it will not end well for ETH investors.
To recall, Strategy is the leading public company when it comes to the amount of Bitcoin (BTC) held on its balance sheet. According to data from Coingecko, Strategy currently holds 640,031 BTC, worth more than $48 billion at prevailing market prices.
For the uninitiated, the Kimchi premium refers to the price difference where cryptocurrencies trade at higher prices on South Korean exchanges compared to global markets. This premium arises from strong local demand, limited capital flow out of Korea, and regulatory barriers that prevent easy arbitrage between Korean and international exchanges.
