Dunamu, the parent company of Upbit, one of South Korea's prominent cryptocurrency exchanges, witnessed a substantial decrease in net profit.
Dunamu, the parent company of Upbit, one of South Korea's prominent cryptocurrency exchanges, witnessed a substantial decrease in net profit during the third quarter of 2023 in comparison to the corresponding period last year. In Q3 2022, the company reported a net profit of 159.9 billion Korean won (KRW), equivalent to around $123 million. However, in this year's third quarter, Dunamu experienced a sharp decline in net profit to 29.5 billion KRW (approximately $23 million), marking an 81% reduction.
Dunamu attributed the decline in net profit to a sluggish investment market resulting from an economic downturn. The company also emphasized the impact of declining prices of virtual assets compared to Q3 last year.
Despite the challenging market conditions, Dunamu maintains an optimistic outlook for the future. The company believes that the widespread adoption of blockchain services will play a critical role in overcoming the ongoing bear market. A spokesperson from Dunamu expressed their dedication to revitalizing the blockchain ecosystem and establishing an advanced investment environment based on their technological expertise.
Alongside financial difficulties, Dunamu has encountered cybersecurity threats. Recently, the company disclosed that hackers targeted its crypto exchange, Upbit, a staggering 159,000 times in the first half of 2023. This represents a 117% increase in hacking attempts compared to the same period in 2022. However, Upbit has successfully averted any breaches since a $50-million exploit in 2019.
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