- KakaoPay shares up 208% amid stablecoin boost.
- President Lee Jae-myung backs local stablecoins.
- Stock prices of Kakao Group affiliates also rise.
KakaoPay’s shares have jumped more than 200% this past month, driven by growing anticipation of stablecoin development in South Korea, spearheaded by new President Lee Jae-myung.
KakaoPay’s Stock Surge
KakaoPay, a leader in South Korea’s payment sector, witnessed a 208% stock surge amid speculation around Korean won stablecoins. This growth is attributed to President Lee Jae-myung’s stablecoin-support pledge.
The stock surge has influenced other Kakao Group companies. Kakao Bank and Kakao Games also saw significant market gains. JP Morgan highlights concerns over these developments outpacing fundamentals.
This is not a meaningful performance contribution for a company with a market capitalization of 6.7 trillion won. – JP Morgan Analyst, JP Morgan
The immediate financial uplift of KakaoPay’s stock has been notable. However, JP Morgan cautions about the limited substantial revenue impact from proposed stablecoins, given the company’s market cap.
Potential Stablecoin Impact
Potential stablecoins, based on the Korean won, are yet to be realized, awaiting regulatory clearance. This anticipation has not tangibly shifted on-chain crypto assets, according to available data.
Insight into potential outcomes focuses on possible regulatory adjustments and market enthusiasm for government-backed digital currencies. Historical trends in related Asian markets suggest initial excitement may slow upon execution.
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