Upbit Owner Dunamu’s Profits Plunge 81% in Q3, Cites Global Economic Slowdown

<p>Dunamu has released its financial report for the
third quarter, highlighting a significant downturn in its
performance. The company's net profit for the quarter was KRW 29.5 billion, down
81.6% from the same period last year.</p><p>The blockchain and fintech company experienced a
decrease of 29% in sales, resulting in a drop of 39.6% in operating profit
compared to the same period in 2022. According to a statement by
the company, this reduction is attributed to various factors, primarily the
global economic recession and reduced liquidity in the market.</p><p>Upbit Faces Declining Crypto Prices</p><p>The fall in sales and profit is attributed to a sluggish investment landscape experienced in the market, which was affected by the prevailing economic
recession. Additionally, the company faced substantial losses in the valuation of virtual assets, primarily due to a decline in prices compared to the
previous quarter.</p><p>Despite the challenging market conditions, Dunamu is
pivoting towards popularizing blockchain services as a potential
means to overcome the bearish market sentiment. The company aims to leverage
its technology to revitalize the blockchain ecosystem. </p><p>Dunamu is intensifying efforts to strengthen its
security infrastructure amidst a significant rise in hacking attempts on Upbit.
Despite <a href="https://www.financemagnates.com/cryptocurrency/rising-cyberattacks-upbit-targeted-in-159000-hacking-attempts/" target="_blank" rel="follow">facing 159,000 hacking attempts</a> in the first half of 2023, the <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>
hasn't reported any breaches since it experienced an exploit that led to a loss
of $50 million in 2019.</p><p>Recently, Dunamu presented the alarming figures on <a href="https://www.financemagnates.com/tag/upbit/" target="_blank" rel="follow">Upbit</a> to South Korean Representative Park Seong-jung. The exchange
has reportedly reinforced security measures, notably increasing cold wallet holdings to
70%. Besides that, it has enhanced the protocols for funds stored in hot wallets, which are more
vulnerable to breaches.</p><p>Other exchanges like CoinEx and Huobi Global have
faced substantial breaches, emphasizing the vulnerability of cryptocurrency
exchanges to cyberattacks and the urgent need for industry-wide security
enhancements. </p><p>Aiming for Growth and Global Expansion</p><p>Upbit Singapore <a href="https://www.financemagnates.com/cryptocurrency/upbits-singapore-entity-gets-in-principal-approval-for-mpi-license/" target="_blank" rel="follow">received an in-principal approval</a> for a Major
Payment Institution (MPI) license from the Monetary Authority of Singapore in October. This authorization allowed the crypto exchange
to provide regulated digital payment token services under Singapore's <a href="https://www.financemagnates.com/terms/p/payments/">Payments</a>
Services Act while awaiting full approval.</p><p>The platform, operational since 2018, previously
received exempt status in 2020, recognizing its adherence to regulatory
standards. This development followed the acquisition of MPI licenses by other notable entities in Singapore, like Ripple, Coinbase, and Sygnum.</p><p>Singapore has become an appealing destination for
crypto firms seeking to expand across the Southeast Asian market due to clear
crypto regulations.</p>

This article was written by Jared Kirui at www.financemagnates.com.