South Korea is quickly evolving into an Ethereum powerhouse, despite only recently announcing a ban on domestic ICO’s.
South Korea is currently the world’s second largest Ethereum exchange market, and is evolving into a Ethereum powerhouse, thanks to a rapidly growing number of active developments, domestic projects and communities. So, in terms of trading volumes, liquidity and activity, it really is taking over!
South Korean government ban ICO’s
This news has come after the South Korean governments and its financial regulator, The Financial Services Commission (FSC) revealed the plans to ban domestic ICO’s, or Initial Coin Offerings. It saw the price of Ether decline by over eight percent, as the ICO industry is a massive market for Ethereum, which led to many traders selling their Ether in panic.
This was very short lived though, and the price quickly recovered within hours of this news being released. Despite an overall fall in the Ethereum exchange market from 33 percent to 23 percent, South Korea still managed to secure its position as the second largest market for Ethereum, showing that even with this latest turnaround, Ethereum was still a very strong currency in this country.
South Korean Investors
One of the reasons that Ethereum market is taking over South Korea is because it is supported by mostly speculative investors. Although speculative investors can, and tend to be influenced by industry movements that can then affect the price of Ethereum. Particularly those that can lead to a decline in price. That said, regardless of this, a large portion of investors are real supporters of Ethereum, and an infrastructure for decentralised applications.
Although ICO’s are a considerable market for Ethereum, it is likely that the performance of decentralised applications will evolve as a major factor for the market cap of Ethereum, over the next few years.
It has been emphasised that it could take a few years for Ethereum to be at a point in which the decentralised applications with millions of users can be launched and sustained. That said, it should be noted that there are many different multi-billion dollar conglomerates and financial institutions in the Ethereum industry, who are working to develop decentralised applications and platforms on top of the protocol. This is all to create a better environment for decentralised applications, which will allow the highly anticipated projects to evolve.
It is easy to see why, when you consider the investors that South Korea have in Ethereum, why it is taking over, and they are becoming a successful Ethereum powerhouse! Buterin, one of the co-founders of Ethereum, noted that this kind of mindset and support could lead the country to become a major factor on the impact that the blockchain could have. In an interview, he stated that Ethereum’s main benefits are; “in its generality and in its utility to many kinds of industries” and that this is a result of “Ethereum deliberately being designed as a general-purpose programming platform.” This indicates that the currency could easily continue to take over South Korea, as the applications continue to be tested and implemented.
References And Further Reading:
- The Cointelegraph; South Korea is Evolving into an Ethereum Powerhouse
- The Cointelegraph; South Korea is Becoming Bitcoin and Ethereum Powerhouse
- Crypto News Monitor; Ethereum Taking Over: South Korea Running the Show
- The Cointelegraph; South Korea ICO ‘Ban’: Bitcoin Price, Ethereum Show Market Not Impressed
- ZeroHedge; Ethereum Tumbles After South Korea Bans ICOs, Margin Trading
- Ethereum World News; Ethereum Taking Over: South Korea Running The Show