No. 1 in popularity, yet down 8%? Unpacking South Korean retail investors’ “AI frenzy” and the Worldcoin (WLD) bagholder trap
Recently, a news story claiming that “AI crypto trading in South Korea has pushed Worldcoin (WLD) to $7.41 billion” has been making the rounds in crypto circles. At first glance, my reaction was the same as that of most seasoned crypto investors: South Korean retail traders are going wild again. An annual trading volume of 7.4 billion dollars’ worth of Korean won has propelled WLD to the top spot in local trading volume.
But after staring at that astonishing figure for three seconds, I checked WLD’s live price—and immediately felt my excitement fade. The news is delayed, but your account’s gains and losses are real-time. While press releases proclaiming “No. 1 in trading volume” were flying everywhere, WLD had already fallen to $0.5249, down a whopping 8.1% on the day. When you see a flood of bullish news, it often means the market is already heading south.
Just how intense is South Korea’s AI craze?
The data does back it up. According to a Chainalysis report, by June this year, AI tokens had come to dominate Korean-won trading volume, with several times the volume of traditional payment coins like XRP. WLD’s $7.4 billion in annual trading volume left second-place SAHARA ($3.2 billion) trailing by more than a factor of two. After making money on chip stocks like SK Hynix, South Korean retail investors poured that same “AI fervor” into AI-themed coins.
But behind the glitz, we need to recognize two harsh truths:
First, popularity and people left holding the bag are two different things.
Here’s an everyday analogy: it’s like a school’s most devoted fan club voting an idol trainee into first place. But when you look at ticket prices on the secondary market, they’re falling. The popularity is real, but so is the bagholding. When the hype peaks, it’s often the best window for insiders to sell, thanks to strong liquidity.
Second, two swords are hanging over investors’ heads.
The first is the tax blade: South Korea plans to impose a 22% tax on crypto gains starting in January 2027. Although this policy has been repeatedly delayed in the past, if it actually takes effect, it will be a sword of Damocles hanging over the market. The harder retail investors rush in now, the faster they may stampede for the exits when the time comes.
The second is concentrated token ownership: data shows that more than 90% of WLD tokens are held by just a handful of top wallets. What does that mean?
Recently, a news story claiming that “AI crypto trading in South Korea has pushed Worldcoin (WLD) to $7.41 billion” has been making the rounds in crypto circles. At first glance, my reaction was the same as that of most seasoned crypto investors: South Korean retail traders are going wild again. An annual trading volume of 7.4 billion dollars’ worth of Korean won has propelled WLD to the top spot in local trading volume.
But after staring at that astonishing figure for three seconds, I checked WLD’s live price—and immediately felt my excitement fade. The news is delayed, but your account’s gains and losses are real-time. While press releases proclaiming “No. 1 in trading volume” were flying everywhere, WLD had already fallen to $0.5249, down a whopping 8.1% on the day. When you see a flood of bullish news, it often means the market is already heading south.
Just how intense is South Korea’s AI craze?
The data does back it up. According to a Chainalysis report, by June this year, AI tokens had come to dominate Korean-won trading volume, with several times the volume of traditional payment coins like XRP. WLD’s $7.4 billion in annual trading volume left second-place SAHARA ($3.2 billion) trailing by more than a factor of two. After making money on chip stocks like SK Hynix, South Korean retail investors poured that same “AI fervor” into AI-themed coins.
But behind the glitz, we need to recognize two harsh truths:
First, popularity and people left holding the bag are two different things.
Here’s an everyday analogy: it’s like a school’s most devoted fan club voting an idol trainee into first place. But when you look at ticket prices on the secondary market, they’re falling. The popularity is real, but so is the bagholding. When the hype peaks, it’s often the best window for insiders to sell, thanks to strong liquidity.
Second, two swords are hanging over investors’ heads.
The first is the tax blade: South Korea plans to impose a 22% tax on crypto gains starting in January 2027. Although this policy has been repeatedly delayed in the past, if it actually takes effect, it will be a sword of Damocles hanging over the market. The harder retail investors rush in now, the faster they may stampede for the exits when the time comes.
The second is concentrated token ownership: data shows that more than 90% of WLD tokens are held by just a handful of top wallets. What does that mean?