- Dunamu, owner of major Korean exchange Upbit, reported an 81% drop in Q3 2022 profits compared to previous year amid crypto bear market
- Despite sluggish investment environment, Dunamu aims to revitalize blockchain ecosystem and improve landscape long-term
- Upbit saw a surge in hacking attempts in 2023 but has avoided major breaches since $50M hack in 2019
Dunamu is the owner of Upbit, one of the largest cryptocurrency exchanges in South Korea by trading volume. The company recently reported a steep decline in profits amid a sluggish crypto market.
Financial Results
In Q3 2022, Dunamu earned 15.99 billion Korean won (about $12.3 million) in net profit. However, in Q3 2023, the company’s net income dropped 81% to 2.95 billion won ($2.3 million).
Reasons for Decline
Dunamu attributed the profit slump to falling crypto prices compared to last quarter. The company said an economic downturn has led to a sluggish investment environment.
Response to Challenges
Despite the bear market, Dunamu believes popularizing blockchain services is key to overcoming current industry headwinds. The company plans to revitalize the blockchain ecosystem and improve the investment landscape.
Hacking Attempts
Separately, Upbit saw a 117% surge in hacking attempts in the first half of 2023 compared to 2022. However, the exchange has not reported any security breaches since a $50 million hack in 2019.
Conclusion
Major South Korean crypto players like Dunamu face declining profits amid low asset prices. However, firms are continuing efforts to expand blockchain adoption long-term.
