Tether Premium
USDT premium
How much more, in percent, Tether (USDT) costs in won on Korean exchanges than the KRW/USD exchange rate.
Simple explanation
Background: Korean exchanges deal in Korean won only, with no US dollars, so Tether (USDT) is bought and sold for won and its price follows Korean demand, not just the bank rate.
Tether is a stablecoin designed to stay worth about one dollar, so in theory one USDT should cost about as much as one dollar at the KRW/USD rate.
When many people in Korea want to buy crypto, Tether trades above the exchange rate too. That gap is the Tether premium: (Korean USDT price in won ÷ KRW/USD rate − 1) × 100.
A large Tether premium means that much of a coin's kimchi premium may come from the dollar (Tether) itself being expensive in Korea, not from the coin.
That is why CoinGaja also shows a Tether-based kimchi premium, which converts the overseas price with Upbit's USDT price in won instead of the exchange rate. If the rate-based premium is positive but the Tether-based one is near zero, it is Tether that is expensive, not the coin.
Example
KRW/USD rate ₩1,430
Tether on Upbit ₩1,445
Tether premium = 1,445 ÷ 1,430 − 1 = +1.05%
※ Example numbers, for illustration only
See it on CoinGaja
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