The Whale Who Was Up $100 M: Why I’m Leaving HyperLiquid
Protocol Survived, Users Didn’t I just made a personal—and painful—decision: I will no longer trade on HyperLiquid. I’m not calling for a boycott; I’m simply following the drift of my own values. After clearing $95 M on HL—and crossing nine figures across venues—my P&L is still positive this year. But on 10 October I lost $62 M in a single liquidation cascade. That day showed me the industry has out-grown its “hope and prayer” risk architecture.What Actually Happened on 10·10Binance’s interna...
From Meta to Blockchain Rising Stars: The Rise of Sui and Aptos
In recent years, the cryptocurrency market has experienced explosive growth. The success of mainstream cryptocurrencies like Bitcoin and Ethereum has attracted widespread attention from global investors. Emerging projects continue to emerge, offering a variety of investment opportunities. Investors are attracted by their high potential for returns, while also being aware of the market's high volatility and risks. Sui and Aptos are two blockchain projects that have recently garnered significan...
When the “Infinite-Ammo” mNAV Flywheel Reverses: Hidden Sell-Side Risks in the Crypto-Treasury Narra…
Executive Summary Treasury-driven alt-coins have turbo-charged this bull run. Ethereum has risen from US$1 800 to US$4 700 (+160 %) as listed “mini-MSTRs” like SBET and BMNR relentlessly buy ETH. Solana, BNB and HYPE have spawned copy-cat treasuries of their own. But the same flywheel that lifts prices can spin backwards. WINT—once a BNB-treasury poster-child—was delisted by Nasdaq and fell 91 %. Lion Group just trimmed US$500 k of its own HYPE stack. If mNAV (market-to-NAV ratio) drops below...
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The Whale Who Was Up $100 M: Why I’m Leaving HyperLiquid
Protocol Survived, Users Didn’t I just made a personal—and painful—decision: I will no longer trade on HyperLiquid. I’m not calling for a boycott; I’m simply following the drift of my own values. After clearing $95 M on HL—and crossing nine figures across venues—my P&L is still positive this year. But on 10 October I lost $62 M in a single liquidation cascade. That day showed me the industry has out-grown its “hope and prayer” risk architecture.What Actually Happened on 10·10Binance’s interna...
From Meta to Blockchain Rising Stars: The Rise of Sui and Aptos
In recent years, the cryptocurrency market has experienced explosive growth. The success of mainstream cryptocurrencies like Bitcoin and Ethereum has attracted widespread attention from global investors. Emerging projects continue to emerge, offering a variety of investment opportunities. Investors are attracted by their high potential for returns, while also being aware of the market's high volatility and risks. Sui and Aptos are two blockchain projects that have recently garnered significan...
When the “Infinite-Ammo” mNAV Flywheel Reverses: Hidden Sell-Side Risks in the Crypto-Treasury Narra…
Executive Summary Treasury-driven alt-coins have turbo-charged this bull run. Ethereum has risen from US$1 800 to US$4 700 (+160 %) as listed “mini-MSTRs” like SBET and BMNR relentlessly buy ETH. Solana, BNB and HYPE have spawned copy-cat treasuries of their own. But the same flywheel that lifts prices can spin backwards. WINT—once a BNB-treasury poster-child—was delisted by Nasdaq and fell 91 %. Lion Group just trimmed US$500 k of its own HYPE stack. If mNAV (market-to-NAV ratio) drops below...
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Seoul’s Big Gamble: Can Crypto Reshape Korea’s Economic Future?
Support NFT
Seoul’s Big Gamble: Can Crypto Reshape Korea’s Economic Future?
For millions of young Koreans, cryptocurrency is, in the words of researcher Eli Ilha Yune, “financial despair in digital form.”
---
From Martial Law to Policy Revolution
On a surreal December night in 2024, President Yoon Suk-yeol declared martial law, sent troops into the National Assembly and even considered striking North Korea. He could hardly have guessed that this political suicide would, within weeks, give birth to one of the world’s most radical crypto-policy agendas—yet that is exactly what happened.
The two-hour coup attempt ended in impeachment and a power vacuum. Into the void stepped Lee Jae-myung, the former provincial governor nicknamed “the disruptor.” With a cohesive cabinet and a clear mandate, Lee’s administration unveiled the Digital Asset Basic Act within days of taking office and began dismantling eight-year-old bans on corporate crypto activity.
---
Crypto as National Infrastructure
Before diving deeper, a snapshot of South Korea is essential: a tech-heavy economy where most citizens already know what a private key is, and where orthodox monetary tools have failed to fix structural problems. Digital assets are being framed both as short-term relief and long-term competitive advantage.
Sixteen million Koreans—more than the 14.1 million retail stock investors—now hold crypto accounts. For the first time ever, digital-asset participation has overtaken traditional equities. Roughly one in three citizens trades crypto; among adults under sixty the figure exceeds 50 %. Twenty percent of government officials have disclosed holdings worth about USD 9.8 million in aggregate. Hanwha Finance reports that 27 % of Koreans aged 20-50 allocate 14 % of their financial portfolios to digital assets.
This is the result of years of steadily rising adoption, driven by economic pressure, technological fluency, and a political system that finally chose to ride—rather than resist—the wave.
---
The Economic Baseline: Why Policy Makers Said “Yes”
Seoul’s embrace of crypto is a response to genuine macro pain.
• 2025 GDP growth is forecast at a recession-like 0.8 %.
• Youth unemployment hit 7.5 % in March, the worst spring figure since 2021.
• Public debt hovers at 47-48 % of GDP, stable but elevated post-COVID.
• Household debt, at 90-94 % of GDP, is the highest among major economies. By contrast, U.S. households owe 69.2 % of GDP while the federal government owes 128 %; Japan’s government owes 248 %, households only 65.1 %.
This inverted debt structure means policy is driven less by sovereign-finance worries than by household balance-sheet stress. When rates rise and growth stalls, the drag on consumption cannot be fixed by monetary tweaks alone.
For Korea’s young, crypto is “financial despair”—not an ideological vote for blockchain but a rational reaction to an economy that offers few other ladders to wealth. Equities yield meager returns, real estate is unaffordable, and the national pension looks shaky.
Western investors treat crypto as portfolio spice; Koreans treat it as essential infrastructure. Government policy is simply catching up to a reality that already exists.
---
A Won-Backed Stablecoin to Keep Capital at Home
Lee’s agenda is designed to stop Korean wealth from leaking into dollar-denominated coins. Today, Koreans buy USDT or USDC, effectively outsourcing infrastructure to U.S.-regulated entities.
In Q1 2025, Korean exchanges wired 56.8 trillion KRW (~USD 40.6 billion) offshore; 26.87 trillion KRW of that—47.3 %—was stablecoins. Remarkably, this happened while the won strengthened 6.5 % against the dollar in 2025, trading at 1,393–1,396 per USD by July. The preference for dollar coins is therefore not a currency-hedge but a structural default.
The Digital Asset Basic Act creates a licensing lane for won-pegged stablecoins. Minimum capital: 5 billion KRW (≈ USD 370 k). The low bar is deliberate—invite domestic competition while keeping standards.
Will this stop capital outflow? Not if Koreans insist on holding dollars; they can still swap into USDC. The true goal is behavioral: offer the same perks—programmability, DeFi access, 24/7 markets—*without* currency conversion. Fees, custody and on-ramps stay inside Korea, flowing to local banks instead of Circle or Tether. It is nudge, not capital control.
Eight major banks—including KB, Shinhan, Woori, NH, KDB, Suhyup, K-Bank and IM—are jointly developing a won stablecoin for late 2025 or early 2026. Their aim is not merely to compete with USDT/USDC but to anchor Korean economic activity inside a home-grown rails.
---
Banks vs. Central Bank: The CBDC Pause
The Bank of Korea fears that privately issued coins could “seriously undermine monetary policy and pose systemic risk.” That disagreement froze the retail CBDC pilot in June 2025; officials now question whether a state-run coin is needed if private variants can do the job more efficiently.
---
Corporate Crypto: From Ban to Green Light
Since 2017, companies and financial firms have been barred from opening exchange accounts; only individuals with real-name KYC could trade. The new government is unwinding the ban in phases.
• Mid-2025: Non-profits and public entities may liquidate donated or seized crypto through verified won-denominated accounts.
• End-2025: ~3,500 listed companies and professional investors will pilot exchange accounts under strict AML/KYC rules.
• Full corporate access is planned, though banks, brokers and asset managers remain excluded for now—ensuring the first wave of adoption is led by non-financial corporates.
Domestic exchanges are rolling out “institution-grade” custody, APIs and white-glove services to meet the expected demand.
---
Political Consensus and Retail Enthusiasm
Crypto is now a mainstream electoral issue. Both major parties pledged to legalize spot-Bitcoin and spot-Ethereum ETFs during the last campaign—a rare bipartisan moment. The Financial Services Commission, once hostile, has submitted a roadmap for approval by December 2025.
The Ministry of SMEs will also lift bans that prevented crypto firms from qualifying as venture start-ups, unlocking a 50 % corporate-tax cut for five years and 75 % cuts on property-acquisition taxes.
Markets have cheered. KakaoBank rose 19.3 % the day after filing crypto-trademark applications; KB Financial jumped 13.38 %. In June 2025, Korean retail investors poured USD 450 million into Circle’s newly listed shares—making it the month’s most-bought overseas stock. Circle’s price has since surged over 500 % as Koreans price in global demand for stablecoin infrastructure.
---
External Pressures and the Clock
President Donald Trump’s threat of 50 % reciprocal tariffs could hammer Korea’s export-led economy (exports = 40 % of GDP). Any trade shock would shrink investable capital, no matter how friendly the rules.
Domestically, the central bank’s hostility to private stablecoins could spark ongoing tension; regulators still lean toward treating coin issuance as banking activity. Meanwhile, a 20 % capital-gains tax on annual crypto profits above 2.5 million KRW has been postponed but not canceled. How that tax interacts with new corporate access rules will shape institutional behavior.
---
A Global Test Case
International observers are watching closely. Korea’s mix of regulatory clarity, corporate on-ramps and domestic stablecoin rails offers a turnkey template for other economies facing similar debt traps and tech adoption curves. If Seoul succeeds, the model could ripple across Asia and beyond, showing how nations can embrace digital-asset innovation without surrendering monetary sovereignty.
For millions of young Koreans, cryptocurrency is, in the words of researcher Eli Ilha Yune, “financial despair in digital form.”
---
From Martial Law to Policy Revolution
On a surreal December night in 2024, President Yoon Suk-yeol declared martial law, sent troops into the National Assembly and even considered striking North Korea. He could hardly have guessed that this political suicide would, within weeks, give birth to one of the world’s most radical crypto-policy agendas—yet that is exactly what happened.
The two-hour coup attempt ended in impeachment and a power vacuum. Into the void stepped Lee Jae-myung, the former provincial governor nicknamed “the disruptor.” With a cohesive cabinet and a clear mandate, Lee’s administration unveiled the Digital Asset Basic Act within days of taking office and began dismantling eight-year-old bans on corporate crypto activity.
---
Crypto as National Infrastructure
Before diving deeper, a snapshot of South Korea is essential: a tech-heavy economy where most citizens already know what a private key is, and where orthodox monetary tools have failed to fix structural problems. Digital assets are being framed both as short-term relief and long-term competitive advantage.
Sixteen million Koreans—more than the 14.1 million retail stock investors—now hold crypto accounts. For the first time ever, digital-asset participation has overtaken traditional equities. Roughly one in three citizens trades crypto; among adults under sixty the figure exceeds 50 %. Twenty percent of government officials have disclosed holdings worth about USD 9.8 million in aggregate. Hanwha Finance reports that 27 % of Koreans aged 20-50 allocate 14 % of their financial portfolios to digital assets.
This is the result of years of steadily rising adoption, driven by economic pressure, technological fluency, and a political system that finally chose to ride—rather than resist—the wave.
---
The Economic Baseline: Why Policy Makers Said “Yes”
Seoul’s embrace of crypto is a response to genuine macro pain.
• 2025 GDP growth is forecast at a recession-like 0.8 %.
• Youth unemployment hit 7.5 % in March, the worst spring figure since 2021.
• Public debt hovers at 47-48 % of GDP, stable but elevated post-COVID.
• Household debt, at 90-94 % of GDP, is the highest among major economies. By contrast, U.S. households owe 69.2 % of GDP while the federal government owes 128 %; Japan’s government owes 248 %, households only 65.1 %.
This inverted debt structure means policy is driven less by sovereign-finance worries than by household balance-sheet stress. When rates rise and growth stalls, the drag on consumption cannot be fixed by monetary tweaks alone.
For Korea’s young, crypto is “financial despair”—not an ideological vote for blockchain but a rational reaction to an economy that offers few other ladders to wealth. Equities yield meager returns, real estate is unaffordable, and the national pension looks shaky.
Western investors treat crypto as portfolio spice; Koreans treat it as essential infrastructure. Government policy is simply catching up to a reality that already exists.
---
A Won-Backed Stablecoin to Keep Capital at Home
Lee’s agenda is designed to stop Korean wealth from leaking into dollar-denominated coins. Today, Koreans buy USDT or USDC, effectively outsourcing infrastructure to U.S.-regulated entities.
In Q1 2025, Korean exchanges wired 56.8 trillion KRW (~USD 40.6 billion) offshore; 26.87 trillion KRW of that—47.3 %—was stablecoins. Remarkably, this happened while the won strengthened 6.5 % against the dollar in 2025, trading at 1,393–1,396 per USD by July. The preference for dollar coins is therefore not a currency-hedge but a structural default.
The Digital Asset Basic Act creates a licensing lane for won-pegged stablecoins. Minimum capital: 5 billion KRW (≈ USD 370 k). The low bar is deliberate—invite domestic competition while keeping standards.
Will this stop capital outflow? Not if Koreans insist on holding dollars; they can still swap into USDC. The true goal is behavioral: offer the same perks—programmability, DeFi access, 24/7 markets—*without* currency conversion. Fees, custody and on-ramps stay inside Korea, flowing to local banks instead of Circle or Tether. It is nudge, not capital control.
Eight major banks—including KB, Shinhan, Woori, NH, KDB, Suhyup, K-Bank and IM—are jointly developing a won stablecoin for late 2025 or early 2026. Their aim is not merely to compete with USDT/USDC but to anchor Korean economic activity inside a home-grown rails.
---
Banks vs. Central Bank: The CBDC Pause
The Bank of Korea fears that privately issued coins could “seriously undermine monetary policy and pose systemic risk.” That disagreement froze the retail CBDC pilot in June 2025; officials now question whether a state-run coin is needed if private variants can do the job more efficiently.
---
Corporate Crypto: From Ban to Green Light
Since 2017, companies and financial firms have been barred from opening exchange accounts; only individuals with real-name KYC could trade. The new government is unwinding the ban in phases.
• Mid-2025: Non-profits and public entities may liquidate donated or seized crypto through verified won-denominated accounts.
• End-2025: ~3,500 listed companies and professional investors will pilot exchange accounts under strict AML/KYC rules.
• Full corporate access is planned, though banks, brokers and asset managers remain excluded for now—ensuring the first wave of adoption is led by non-financial corporates.
Domestic exchanges are rolling out “institution-grade” custody, APIs and white-glove services to meet the expected demand.
---
Political Consensus and Retail Enthusiasm
Crypto is now a mainstream electoral issue. Both major parties pledged to legalize spot-Bitcoin and spot-Ethereum ETFs during the last campaign—a rare bipartisan moment. The Financial Services Commission, once hostile, has submitted a roadmap for approval by December 2025.
The Ministry of SMEs will also lift bans that prevented crypto firms from qualifying as venture start-ups, unlocking a 50 % corporate-tax cut for five years and 75 % cuts on property-acquisition taxes.
Markets have cheered. KakaoBank rose 19.3 % the day after filing crypto-trademark applications; KB Financial jumped 13.38 %. In June 2025, Korean retail investors poured USD 450 million into Circle’s newly listed shares—making it the month’s most-bought overseas stock. Circle’s price has since surged over 500 % as Koreans price in global demand for stablecoin infrastructure.
---
External Pressures and the Clock
President Donald Trump’s threat of 50 % reciprocal tariffs could hammer Korea’s export-led economy (exports = 40 % of GDP). Any trade shock would shrink investable capital, no matter how friendly the rules.
Domestically, the central bank’s hostility to private stablecoins could spark ongoing tension; regulators still lean toward treating coin issuance as banking activity. Meanwhile, a 20 % capital-gains tax on annual crypto profits above 2.5 million KRW has been postponed but not canceled. How that tax interacts with new corporate access rules will shape institutional behavior.
---
A Global Test Case
International observers are watching closely. Korea’s mix of regulatory clarity, corporate on-ramps and domestic stablecoin rails offers a turnkey template for other economies facing similar debt traps and tech adoption curves. If Seoul succeeds, the model could ripple across Asia and beyond, showing how nations can embrace digital-asset innovation without surrendering monetary sovereignty.
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