Koreans Swap Crypto Trading for Stocks After LUNA Crash
Korean traders once turned crypto trading into an e-sports spectacle at events like Perp-DEX Day, mirroring their culture for instant feedback and game-style ranking. However, following the 2022 LUNA crash—which wiped out TerraUSD (UST) and collapsed LUNA’s value—retail activity on Upbit plunged by 80%, and crypto trading interest, searches and community engagement sharply declined. Rather than quit speculation, young Koreans relocated their capital to the domestic stock market. In 2025, the KOSPI index surged over 70% year-to-date, with Samsung Electronics, LG Energy Solution and SK Hynix doubling or tripling in price. Brokers’ apps frequently crashed under heavy order flows as former crypto traders applied their risk appetite and leverage strategies to equities. While short-term crypto trading volumes remain depressed, analysts note these investors may return once a new high-profile narrative emerges.
Bearish
The migration of Korean retail investors from crypto trading to equities after the LUNA crash signals a sharp short-term bearish sentiment. Historically, Korean retail has driven significant altcoin premiums and high turnover; its sudden retreat—evidenced by an 80% slump in Upbit volumes—removes critical liquidity from the market. In the past, similar sell-offs after major collapses like Mt. Gox led to extended price corrections. With these traders now focused on a surging KOSPI, downward pressure on crypto prices is likely to persist in the near term. Over the long term, however, their proven risk appetite and tendency to chase new narratives could restore bullish momentum if a compelling new project or market catalyst emerges.