Upbit parent Dunamu's profits drop 81% in Q3

Introduction

Dunamu, the parent company of Upbit, one of South Korea's largest cryptocurrency exchanges, experienced a significant decline in net profit during the third quarter of 2023. The company's profits dropped by 81.6% compared to the same period last year.

Profit Drop

In 2022 Q3, Dunamu reported a net profit of 159.9 billion Korean won (KRW), equivalent to approximately $123 million. However, the company recently announced that it only generated 29.5 billion KRW, or about $23 million, in the third quarter of this year. This represents an 81% decline in net profit.

Cause of Decline

Dunamu attributed the drop in sales to a "sluggish investment market" caused by an economic downturn. Additionally, the decline in net profit was linked to the decrease in virtual asset prices compared to the previous quarter.

Future Outlook

Despite the challenging market conditions, Dunamu believes that promoting blockchain services will be crucial in overcoming the bear market. The company's spokesperson stated that they will continue their efforts to revitalize the blockchain ecosystem and create a more advanced investment environment leveraging their technological capabilities.

Hacking Attempts

In addition to the decline in profits, Dunamu recently reported that their crypto exchange Upbit was targeted by hackers 159,000 times in the first half of 2023. This marks a 117% increase in hacking attempts compared to the first half of 2022. However, the exchange has not experienced any breaches since a $50 million exploit in 2019.