GenZ investors in South Korea show a strong preference for altcoins, particularly Ripple (XRP), over Bitcoin (BTC) and Ethereum (ETH), according to local news outlet
According to a recent analysis by News1 Korea, young cryptocurrency investors in South Korea, referred to as GenZ, have displayed a higher inclination towards investing in altcoins like Ripple (XRP) as compared to Bitcoin (BTC) and Ethereum (ETH). The analysis was conducted using investment data from the first half of the year collected from the crypto exchange Bithumb, with a particular focus on investment tendencies based on age groups.
Investors in their twenties were identified as being more "aggressive" in their investment strategies compared to other age groups. The study also found that GenZ investors had a higher proportion of investments in altcoins other than BTC and ETH. The report categorized BTC and ETH as both "long-term" and "stable" investments due to their relatively low volatility.
Out of all the altcoins, Ripple (XRP) was the most favored by GenZ investors, with 20.7% holding the digital asset. The report also highlighted that GenZ accounted for almost half of all crypto copy traders, according to another report from the crypto derivatives exchange Bitget.
Investors in their thirties have the highest percentage of BTC and ETH investments
Interestingly, the study revealed that investors in their thirties had the highest percentage of investments in Bitcoin (BTC) and Ethereum (ETH). This indicates that the older age group shows a stronger preference for these popular cryptocurrencies.
Ripple's ongoing legal battle does not deter GenZ investors in South Korea
Despite facing scrutiny and a lawsuit in the United States, Ripple continues to gain popularity among GenZ investors in South Korea. The article mentions that Ripple has been dealing with regulatory challenges in the U.S., with a legal expert estimating that these conditions have set back its adoption by three years.
South Korea tightens regulations on crypto activities
South Korea has taken measures to tighten regulations on cryptocurrency activities within the country. For example, on August 22, it was reported that authorities in the city of Cheongju planned to seize cryptocurrencies from thousands of users who had evaded local taxes. Additionally, the CEO of the crypto exchange Bitsonic was arrested on August 9 for allegedly stealing $7.5 million in user funds.
Prior to these incidents, on July 26, South Korea established an interagency investigation unit to combat crypto-related crimes and strengthen regulations in the crypto market to protect investors. The decision was made in response to a rise in illicit activities in the market.
Overall, GenZ investors in South Korea are showing a strong preference for altcoins, particularly Ripple (XRP), over Bitcoin (BTC) and Ethereum (ETH), indicating their confidence in these alternative digital assets despite ongoing regulatory challenges and tighter regulations in the country.
Related: XRP is not a security. Period' — Crypto lawyers on Ripple's case amid SEC appeal
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