Despite the increase in the cryptocurrency market, a significant development occurred as companies providing crypto services saw their profits increase. According to transaction volume, Dunamu, the owner of Upbit, one of South Korea’s largest crypto exchanges, experienced a 81.6% decrease in net profit in the third quarter of 2023 compared to the same period last year.
Dunamu reported a net profit of approximately $123 million, or 159.9 billion Korean won (KRW), in the third quarter of 2022. However, a financial report released to the public on November 28 showed that the company only made about $23 million in revenue, or 29.5 billion KRW, in the third quarter of this year. This indicates an 81% decrease in the company’s net profit compared to the same period last year.
Dunamu attributed the decline in sales to the economic slowdown and sluggish investment market. Additionally, company officials stated that the drop in net profits was also due to the stagnation in the cryptocurrency market compared to the previous quarter.
Nevertheless, Dunamu argued that the widespread adoption of blockchain services would be a significant supportive force in overcoming the negative effects of market conditions. A Dunamu spokesperson stated in the report that they plan to continue efforts to revitalize the blockchain ecosystem and create a more advanced investment environment based on technological developments.
The company’s financial report also disclosed that in the first half of 2023, the crypto exchange Upbit was targeted by black-hat hackers 159,000 times. According to South Korea-based Yonhap News Agency’s report on October 9, Upbit experienced a 117% increase in hacking attempts in the first half of 2023 compared to the same period in 2022.