Dunamu, the owner of Upbit, one of South Korea’s biggest crypto exchanges by trading volume, experienced a significant decline in net profit during Q3 of 2023.
The company’s net profit dropped by 81.6% compared to the same period last year, from 159.9 billion Korean won (KRW) to 29.5 billion KRW, or around $23 million.
Reasons for the Drop in Net Profit
Dunamu attributed the decrease in net profit to a sluggish investment market caused by an economic downturn. Additionally, the decline was also influenced by the drop in virtual asset prices compared to the previous quarter.
Belief in Blockchain Services
Despite the bear market, Dunamu remains optimistic and believes that popularizing blockchain services will play a crucial role in overcoming the current challenges. The company plans to continue its efforts in revitalizing the blockchain ecosystem and creating an advanced investment environment using its technological capabilities.
Increase in Hacking Attempts
In addition to financial challenges, Dunamu has reported a significant increase in hacking attempts on its crypto exchange, Upbit. In the first half of 2023 alone, Upbit was targeted 159,000 times, marking a 117% increase compared to the same period in 2022. However, no breaches have been reported since a $50 million exploit in 2019.
Hot Take: Dunamu Faces Profit Decline and Security Challenges Amid Crypto Market Volatility
Dunamu, the owner of South Korea’s major crypto exchange Upbit, saw an alarming drop of 81.6% in net profit during Q3 of 2023. The decline was attributed to a sluggish investment market and falling virtual asset prices. Despite these challenges, Dunamu remains committed to popularizing blockchain services as a means to overcome the bear market. However, the company also faces a growing number of hacking attempts on its exchange, with 159,000 attacks reported in the first half of the year. As the crypto market continues to experience volatility, Dunamu must navigate both financial and security hurdles to maintain its position in the industry.
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