Whales Control Over 90% of Trading on South Korea’s Crypto Exchanges, Data Shows

Core Insights - Large-scale investors, referred to as "whales," dominate the trading landscape in South Korea, accounting for over 90% of trading on centralized exchanges [1][2] - The report highlights the trading concentration of whale investors, revealing that the top 10% of users on exchanges significantly influence total trading volume [2] Trading Concentration - Bithumb exhibits the highest trading concentration of whale investors at 97.97%, indicating that the bottom 90% of users contribute only 2.03% of the total trading volume [3] - Other exchanges follow closely, with GOPAX at 97.95%, Coinone at 97.54%, Korbit at 97.52%, and Upbit at 89.36% [4] Market Capitalization Impact - The report indicates that trading concentration increases with market capitalization, with even smaller-cap cryptocurrencies showing over 60% concentration [5] - Bithumb recorded the highest trading concentration for the 10 lowest market-cap assets at 83.8%, while Upbit had the lowest at 66.91% [5] Listing Effects - Historically, new cryptocurrency listings on Korean exchanges have led to significant price increases, often attributed to the collective buying power of Korean investors [6] - However, the data suggests that this phenomenon may be driven by a small number of whale investors rather than widespread retail participation [6] Market Characteristics - The high concentration of trading activity is attributed to the unique characteristics of the Korean crypto market, where centralized exchanges primarily facilitate spot trading and most users are retail investors [7] - The South Korean Financial Services Commission plans to allow crypto exchange accounts for up to 3,500 institutions, targeting professional investors in the latter half of the year [7]