The results of South Korea’s crypto frenzy appear to be spreading past the cryptocurrency market to have an effect on stock costs in the nation’s stock alternate.
According to a report by Bloomberg on Wednesday, Hanwha Investment & Securities Co. has seen its stock price nearly triple because the begin of the 12 months.
Indeed, on the time of writing, Hanwha Investment is trading at 6,550 Korean received per share, which constitutes a 197% stock price achieve year-to-date.
This almost-200% share price enhance places Hanwha Investment as the perfect performing of the businesses in the Korea Composite Stock Price Index.
Hanwha Investment’s bullish share price progress is probably going tied to the corporate’s crypto affiliation. The monetary funding service supplier holds a minority stake in Dunamu — operators of the Upbit cryptocurrency alternate.
Upbit, together with Korbit, Bithumb and Coinone are collectively referred to as the “big four” crypto exchanges in South Korea, controlling a significant share of the nation’s cryptocurrency trading exercise.
The crypto causality case for Hanwha Investment’s share price enhance can be additional strengthened by the efficiency of different Dunamu backers. Both Woori Tech and Kakao Corp have additionally posted important stock price features in latest occasions.
As beforehand reported by Cointelegraph, South Korean brokerage agency Mirae Asset Daewoo is tipping Kakao stock to increase significantly in 2021 on the again of crypto enthusiasm in the nation.
Meanwhile, Dunamu is reportedly mulling a public itemizing in the United States, which may occur on the Nasdaq. Dunamu’s announcement coincided with Coinbase shifting ahead with its direct itemizing on Nasdaq, which triggered renewed enthusiasm for crypto shares in South Korea.
Upbit’s upsurge in crypto trading exercise has additionally seen its important banker Okay Bank get well from a tumultuous 2020 whereas announcing plans for a possible initial public offering in 2022. Massive crypto person onboarding by Okay Bank for trading on Upbit has seen the financial institution shake off the $89 million posted in 2019.