The cryptocurrency trading craze in South Korea has quietly spilled over into the stock market, with investors flocking to the Bitcoin mining company BitMine, driven by Tom Lee, reflecting the younger generation's anxiety for high-risk returns. (Background: The largest holder of Ethereum, BitMine (BMNR), has reported a paper loss of $190 million; Tom Lee confidently states: ETH could reach $15,000) (Additional context: Bitcoin has surged past $121,400, 'liquidating $370 million'; Tom Lee predicts it will reach $250,000 by year-end) The cryptocurrency trading frenzy in South Korea has subtly entered the 'stock market'. The 'kimchi premium' of that year was once a spectacle that the global cryptocurrency market thrived on. This country, with a population of only 51 million, once generated Bitcoin trading volumes significant enough to shake the global market. Although strong government regulations have turned this premium phenomenon into history, the inherent adventurous spirit of South Koreans has not diminished; they are simply searching for new outlets. Additionally, the main driving force behind this frenzy isn't the large South Korean institutional investors, but rather the younger retail investors betting on their futures. In this nation of 51 million people, as many as 18 million are active in the digital asset market, making up more than one-third of the total population, and nearly a quarter of younger people aged 20 to 39 see trading cryptocurrencies as their only chance to turn their lives around. BitMine is the latest trading target. According to data from the South Korean Securities Depository, as cited by Bloomberg, South Korean investors have poured a net capital of $259 million into BitMine stocks since July, making BitMine the top foreign stock purchase in South Korea. BitMine is a Bitcoin mining company supported by 'Silicon Valley King' Peter Thiel, which has recently transitioned from Bitcoin mining to using ETH as its financial strategy, now holding over 1.15 million ETH, valued at over $4.96 billion. This makes it an important 'vault' for ETH holdings on Wall Street. Interestingly, the key promoter bringing ETH to Wall Street, Tom Lee, is also a director at BitMine. Tom Lee is a Korean American. After the bloody lesson from the collapse of LUNA, South Korean investors' enthusiasm for risk assets has not waned. At this time, the emergence of a 'fellow countryman' from abroad, achieving great success in the financial world, undoubtedly garners high trust and attention. For South Korean retail investors, this is not just the viewpoint of an industry expert, but also a rallying call imbued with national sentiment. This subtle cultural identity further reinforces their confidence and enthusiasm for the cryptocurrency market. Why not buy ETH directly? A key question arises: since there is optimism for Ethereum, why not buy ETH directly but instead take a long route to purchase BitMine's stock? Volatility may be the answer. Although cryptocurrencies are known for their extreme volatility, some retail investors may believe that participating through the stock market can provide a different risk exposure. Actual backtesting shows that the price of ETH rose from $2,500 to $3,800 in July, an increase of 52%. During this period, BitMine's stock BMNR rose from $46 on July 1 to a peak of $135, a maximum increase of 193%. However, as of the time of writing, ETH has surged to $4,300, the highest level since December 2021, while BMNR's price has only slightly recovered to $58.98. High-risk tolerant South Korean investors seem more inclined to choose more volatile investment types, even though this 'roller coaster' style of rise and fall can cause numerous retail investors chasing highs to fall from the clouds. However, the direct trading volume of ETH is also not low; in just July, South Korea's largest exchange, Upbit, had an ETH trading volume of $111.1 billion, and the net inflow is currently unquantifiable. BitMine is merely a microcosm of the 'coin stock' craze. However, this is not the first time South Koreans have rushed into 'coin stocks'. When the stablecoin company Circle went public, it attracted South Korean investors' attention, with a net purchase amount of $450 million in the month of Circle's listing, driving the price-to-earnings ratio of Circle to 187 times, a figure far exceeding any reasonable valuation for traditional fintech companies. This frenzy has also swept through the domestic market in South Korea. The new government's crypto-friendly policies have filled retail investors with expectations, which is also part of the reason pushing the Korea Composite Stock Price Index to a nearly four-year high. When the South Korean central bank announced the launch of a digital currency project (CBDC), retail investors sniffed out business opportunities. The stock prices of companies involved in the project, like Kakao Pay and LG CNS, seemed to rocket in a short time. Kakao Pay's stock price doubled in just a month, while LG CNS followed closely behind with an increase of nearly 70%. When the frenzy eventually subsides, the craze for 'crypto-related stocks' in South Korea is less a financial phenomenon and more a reflection of deep societal issues. It illustrates how young South Koreans urgently seek non-traditional, high-risk breakthrough paths in an environment where traditional wealth accumulation channels are increasingly narrow. As Dragonfly's Hadick warns: 'When the premium disappears, investors will quickly sell off stocks; these phenomena are usually fleeting.' The valuations of 'crypto-related stocks' driven up by emotion and speculation may essentially be a huge bubble. When the frenzy ultimately recedes, perhaps the truth will be revealed as to who was swimming naked.

#CBDC #ETH