The Crypto Craze in South Korea
It’s safe to say that crypto trading in South Korea is hotter than a bowl of spicy kimchi right now. Analysts are buzzing with predictions, and Kakao, a well-known player in the tech game, might just be the next big winner. With Bitcoin trading capturing the nation’s attention, Kakao stands to gain from the digital gold rush.
Analyst Insights from Mirae Asset Daewoo
According to the crystal ball readings of analysts at Mirae Asset Daewoo, Kakao might have a leg up thanks to its hefty investment in Dunamu, the operator of Upbit. Kakao holds about a 23% stake, both directly and indirectly. Kim Chang-kwon from the firm has noted that Upbit is now experiencing traffic and trading volumes that have smashed previous records. This means dollar signs for Kakao amidst Bitcoin’s meteoric rise.
What’s Cooking at Upbit?
Upbit is in the limelight as one of the “big four” exchanges in South Korea, rubbing elbows with Bithumb, Coinone, and Korbit. With a flourish of fingers tapping screens, the cryptocurrency buzz at Upbit has set the stage for Kakao to see some impressive returns. Who doesn’t love a good return on investment?
Everything’s Coming Up Kakao
The numbers indicate that Kakao’s stock, listed at 485,000 won (around $429.77), could climb even higher! Mirae Asset Daewoo has reassessed their forecast, now targeting a price of $522.81 for Kakao shares. That’s more potential than a hot dog eating contest at a summer fair!
Past Success and Future Projections
Let’s not forget about Kakao’s previous victories. Back in Q4 of 2017, they made a cool $25 million in profits from their Dunamu investment, just as Bitcoin flirted with the $20,000 mark. If 2021 turns out to be another blockbuster year for the cryptocurrency, analysts suggest profits could escalate to around $90 million. If that doesn’t get you out of bed in the morning, I don’t know what will!
The Bigger Picture: IPOs and Regulations
The excitement doesn’t stop with Kakao. Upbit’s banking partner, K Bank, is planning a 2022 IPO, which could send ripples through the market. But, like every good tale, there’s a twist; South Korean regulators are tightening their grip, introducing stringent reporting requirements for exchanges. Those are some hefty penalties on the line – five years in the pokey for execs if they don’t play nice!
Taxation: The Other Side of Cryptocurrency
As if that weren’t enough, South Korea’s tax authority is stepping up efforts to ensure no virtual coin is left unaccounted. They’re on a hunt to catch anyone trying to hide their crypto wealth. So, if you’re thinking of stashing those sweet virtual coins, you might want to think again!
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