A recent study has shown that the adoption rate of cryptocurrencies in South Korea has shrunk at a tremendous rate. The report shows that the crypto adoption rate has been a whopping 60% in a six-month period.
South Korea Crypto Adoption Drops by 60%
The report shows that the size of the cryptocurrency market in South Korea has been shrinking at a much faster rate than expected. The data suggest that given the current cryptocurrency market dip, the investors have started pulling out of their investments.
This has started making a huge dent in the cryptocurrency industry in South Korea. In the past six months data shows that the cryptocurrency investment rate in the country has dropped by 60%.
The perception among the Investors
In the past six months, multiple developments have taken place in the cryptocurrency industry that has changed the perception of South Korean crypto investors.
Until the earlier months of 2022, the cryptocurrency sector was thriving in the South Korean region. Investors are increasing their investments in cryptocurrencies hoping to see huge gains in the near future.
However, due to the recent major mishaps in the cryptocurrency industry, the economic conditions, and the debacles have reduced the confidence of South Koreans in cryptocurrencies.
Crypto Valuation has witnessed a Great Plunge
The first factor is that the cryptocurrency industry has continued losing its market valuation, making it a less profitable industry. The chances of losses in the cryptocurrency industry are much more than profits.
Until late 2021, the overall valuation of the cryptocurrency industry was around $2.7 trillion. At the time of writing, the crypto market capitalization is down to $930 billion, suggesting the industry has lost over $1.7 trillion in valuation.
The valuation is the combined figure from the valuations of all cryptocurrencies circulating in the crypto-verse. The loss of valuation means that every cryptocurrency has lost its high value, making them less profitable.
For South Koreans, cryptocurrencies offered a great way of generating high profits and making cryptocurrencies their sole investments. Now, things have changed and people are losing interest in cryptocurrencies by the day.
The rise in Crypto Scams
As the cryptocurrency industry has continued growing, the number of cryptocurrency scams has continued rising as well.
The hackers have found multiple sophisticated AI ways to lure people and steal their funds. Therefore, people in South Korea are trying to save themselves from such thefts and are losing trust in any protocols they once interacted with.
Crypto Protocol Debacles
The major setback for the South Korean community that left them extremely angered was the Terra Network debacle which happened in May 2022.
Due to the debacle, LUNA and UST ended up losing their values, which caused the South Korean crypto investors to lose millions of dollars.
Since then, multiple stablecoin crashes have taken place, which is not a good sign for cryptocurrency investors in South Korea.
The people in South Korea want stability and perfection, and the crypto-blockchain sector seems to have failed in meeting their expectations.
Their withdrawal from the crypto industry would mean that the major cryptocurrencies would find it difficult to regain their old values.