TL; DR Breakdown
- South Korea NFT sector records high adoption
- Analysts predict more adoption by the end of 2022
- Lack of regulation is helping the sector
South Korea has pivoted itself from just any nation to one of the top ten in new and emerging technology in the last few years. The country has taken another step in that direction in the non-fungible token sector. According to recent news, the Asian powerhouse has become one of the top adopters of the NFT sector. The country, in 2020, assumed a top 10 position in terms of countries with global innovation.
South Korean NFT market to skyrocket by the end of 2022
The increase in innovation is thanks to electronics giant Samsung and its counterpart, LG technologies. Asides from that, the country has also seen a huge push from Krafton, one of the most famous game makers across the world. The companies with others not yet in the limelight are entering the NFT sector, making a case for the high adoption rate in South Korea. However, analysts have conceded that there might be a wide reason to provide NFT to retail traders.
Giving his opinion, Alex Lim, one of the top members of the NFT project, KlayChicken, said that traders are entering the NFT sector, and nobody has been able to pinpoint an exact reason why. He further noted that the high adoption might be a result of the sentiment that abounded in the sector. The KlayChicken executive believes that the NFT market would have taken a much higher leap in the second half of this year.
Lack of regulation is helping the sector
One of the reasons the rise is happening is the elimination of crypto tax from the country. The crypto tax was delayed at a consensus early this year. Several reports pointed to a further delay going by the election of crypto savvy Yoon Seok-Yeol as president. Asides from that, NFTs are not undergoing the kind of stringent monitoring that crypto is facing across the world, opening the sector to a more straightforward trade.
Although several regulators are mulling regulatory frameworks in the NFT sector, none has materialized yet. This is one of the reasons why crypto exchanges and gaming companies like Krafton have been able to establish a standpoint in the sector. Another push in a positive light for NFTs was the issue of the non-fungible tokens by the president-elect of the country during his campaign. In March, a university in the country also rode on the NFT wave to issue digital certificates to its graduates. One of the reasons why the universe took that route was to eliminate the issues surrounding fake diplomas.