Dunamu Reports 81.6% Drop in Q3 Profits Amid Sluggish Crypto Market and Hacking Attempts
Summary:
In Q3 of 2023, Dunamu, the operator of South Korea's leading crypto exchange Upbit, experienced an 81.6% fall in net profit in comparison to the same period of 2022. The decline was attributed to a stagnating investment market and a dip in virtual asset prices. Despite rising hacking incidents, the firm underlined its commitment to bolster the blockchain ecosystem and enhance investment environments leveraging technology.
In the third quarter of 2023, Dunamu, the firm behind one of South Korea's largest cryptocurrency exchanges, Upbit, witnessed a steep profit decline. Compared to the same quarter in 2022, it experienced an 81.6% drop in net profit. Last year in the third quarter, the company declared a net profit of nearly 159.9 billion Korean won (KRW), equivalent to about $123 million. Conversely, in the same period this year, it reported earnings of just 29.5 billion KRW, or about $23 million, indicating a fall of 81% in its net profit. The organisation attributed this substantial decrease in sales to a sluggish investment market caused by an economic downturn. Meanwhile, Dunamu also acknowledged that the net profit's decline was due to a slump in virtual assets prices compared to the previous quarter. Regardless, the company maintains that increasing the use of blockchain services could help counter the ongoing bear market. A representative of Dunamu expressed in the report that they will continue to work to rejuvenate the blockchain ecosystem and develop a superior investment environment based on their technological prowess. Along with its financial performance, the firm also disclosed recent attempts to hack their crypto exchange, Upbit. Reportedly, in the first half of 2023, Upbit was targeted by hackers 159,000 times. According to a report from South Korea’s Yonhap News Agency on October 9, hacking attempts at Upbit shot up by 117% in 2023 compared to the first half of 2022. Despite this surge in hacking activities, the exchange has not reported any security breaches since a substantial $50 million exploit in 2019.
Published At
11/28/2023 1:58:23 PM
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