Ethereum Created new Historic High through surging 15%, Trading over $1,800 in South Korea
January 8, 2018 10:44 am
The price of Ethereum has climbed more than 15 percent, by achieving a new all-time high at $1,266.
New All-Time High at $1,266
Before four days, the price of Ethereum increased by a new all-time high at $1,000, crossed the level of $1,000 for the first time in its two-year-history. The Market Capitalization of the cryptocurrency had also crossed $100 billion, which made Ethereum become third largest cryptocurrency in the world below Bitcoin and Ripple.
But today, on January 8, Ether reached another major increase in value, reaching $1,266 across all global exchanges.
The latest journey of Ether has been influenced by the South Korean market and leading cryptocurrency exchanges within it, including Bithumb, Korbit, and Coinone. Within the South Korean global market, the price of Ether exceeded $1,800, showing a $534 premium over the global average price. Which is a 29.6 percent premium over the global average Ether price.
Since from last week, Ripple had become the second largest cryptocurrency in the world. But now, Ethereum is back to its position with more than $1,100 trading price. Ethereum is the second largest cryptocurrency in the world as of now.
None of the particular event or movement has directed to the increase in the price of Ethereum from past days. The transaction volume and developer activity of Ethereum have been on the rise in general, the Ethereum network is currently settling more than 1.2 million transactions per day. The growth in the user activity on the Ethereum network is the reason for the increase of Ether in the short-term.
One small factor that could have also triggered an increase in demand for Ether is the rise of adoption of decentralized applications like CryptoKitties and EtherDelta that have expressed the potential of Ethereum in peer-to-peer digital asset trading.
Arbitrage? you will have to think Multiple Times
Anyhow, the price of cryptocurrencies in the South Korean market is individually more than the global average rates, it is not possible for foreigners to take benefit of the arbitrage opportunity in the South Korean market for many reasons:
- Investors need mobile phone numbers to register on South Korean exchanges. South Korean telecoms do not issue (even prepaid sim cards) to individuals without Korean citizenship, residential visa, or work visa.
- Investors will require bank accounts. But, banks do not open bank accounts to foreigners without residential or work visa. There it is even very hard for citizens to open bank accounts as well, because of the governments’ recent crackdown on offshore banking accounts and fraudulent bank accounts.
- The South Korean government has prohibited foreigners and underaged investors from investing in cryptocurrencies. South Korean cryptocurrency exchanges cannot accept foreigners into their trading platforms.
Actually, the prices of cryptocurrencies in the South Korean market are high due to the capital controls. The South Korean market is separated from the global market and foreigners are not allowed in it. South Korean traders are also not allowed to open accounts overseas without proper paperwork.