Dunamu's Upbit Reports 81% Profit Drop in Q3 2023
Zach Anderson Nov 30, 2023 03:31
Upbit's owner, Dunamu, is facing an 81% drop in Q3 2023 profits due to falling crypto prices and a sluggish investment environment.
The revenues of Dunamu, the parent company of Upbit, one of the most prominent cryptocurrency exchanges in South Korea, dropped by an astounding 81% during the third quarter of 2023, according to the company's report. The performance of the corporation during the same quarter of the previous year stands in striking contrast to this dramatic fall made by the company. Dunamu had reported a net profit of 159.9 billion KRW (about $123 million) in the third quarter of 2022, but this number dropped to only 29.5 billion KRW (roughly $23 million) in the third quarter of 2023.
The recent decline in the cryptocurrency market is the primary cause of the financial performance of Dunamu, which has seen a large decline overall. It was admitted by the corporation that the falling pricing of digital assets, in conjunction with an investment climate that was typically slow, were important factors to this collapse. It is important to note that the issues that many organizations in the bitcoin industry had during this time period are reflected in this larger economic situation.
Dunamu continues to be dedicated to the blockchain and cryptocurrency field, despite the present bear market and the financial hardships that its investors have experienced. The organization is of the opinion that increasing the number of people who use blockchain services is essential in order to successfully navigate current challenging market circumstances. As a component of their long-term plan, there is a significant emphasis placed on reviving the blockchain ecosystem and enhancing the broader investment environment.
An further obstacle that Upbit, Dunamu's cryptocurrency exchange, had to contend with was a considerable rise in the number of attempts to hack the system. In comparison to the same time period in 2022, the number of hacking attempts that were made against Upbit increased by 117% during the first half of 2023. Nevertheless, it is significant that the platform has been able to prevent any big security breaches since the hacking incident that occurred in 2019 and included fifty million dollars that occurred.
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