Dunamu’s Upbit Reports 81% Profit Drop in Q3 2023

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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Binance’s Market Dominance Challenged as OKX and Upbit Gain Ground

The 2023 CEX Market Report by 0xScope, published on November 6, 2023, provides a comprehensive overview of the changing landscapes within the centralized exchanges (CEXs) over the past year. It highlights the shifting dynamics and the rise of second-tier exchanges like OKX and Upbit challenging Binance’s previously uncontested dominance.

Binance’s grip on the market has loosened, with its trading volume and other indicators shrinking by approximately 10%. Despite holding more than half of the market’s share at 51.2%, there’s been a noticeable decrease from its 54.6% share in October 2022.

Spot trading competition has intensified, with Binance’s share dropping from 62% to 52.5% over the year. Upbit’s ascent in the market has been significant, leaping from a 5% to a 15.3% share, largely propelled by the vibrant South Korean market.

While Binance still leads in derivatives with a share of around 45%, down from 50.9%, it is facing rising competition. OKX, in particular, has marked its territory, climbing from a 10% to a 15% share in derivatives, signifying a broader shift in the CEX ecosystem.

An examination of on-chain data and asset values shows that established exchanges like Binance, Coinbase, and Bitfinex collectively hold over 80% of market exchange funds. However, a mere 5% decline in Binance’s asset value share indicates a redistribution of market trust towards competitors like OKX and Coinbase.

Binance and Coinbase collectively account for over 60% of the CEX market’s deposit addresses, but the monthly increase in new deposit addresses has been waning, showcasing a challenge in new customer acquisition.

Analyzing web and social media data, Binance has seen a dip in website traffic and Twitter follower share, despite a net increase in followers. In contrast, OKX has witnessed its Twitter followers nearly triple, suggesting an aggressive and successful growth in market visibility.

Notably, the report emphasizes the lack of a direct correlation between web presence and exchange performance. It also acknowledges potential discrepancies due to the opaqueness in exchanges’ on-chain addresses.

This report serves as a critical barometer for understanding CEX dynamics, highlighting that while Binance remains at the forefront, it is facing a significant challenge from emerging players reshaping the market share equation.

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Upbit Announces Dunamu & Partners’ Digital Asset Holdings for October 2023

On October 31, 2023, Upbit, recognized as a global standard digital asset exchange, continued its endeavor to promote a healthy development in the digital asset/blockchain industry by providing a safe and transparent digital asset trading environment.

In a previous announcement, it was conveyed that if a digital asset invested by Dunamu & Partners is supported for trading on Upbit, there would be no selling of the said digital asset for three months from the initial trading support date. Following this period, any changes in the holding amount of the digital asset would be disclosed through Upbit’s official announcements at the end of each month.

In adherence to this principle, the digital asset holdings of Dunamu & Partners for October 2023 were disclosed. It was stated that starting from the disclosure in May 2022, the holding details of BTC (Bitcoin) acquired through exchange trades by Dunamu & Partners would be included, along with the wallet addresses of the held digital assets. This information was provided and published upon request by Dunamu & Partners on October 31, 2023.

The disclosure on October 31, 2023, detailed the following:

Holder: Dunamu & Partners

Digital Asset Type: BTC

Investment Date: February 19, 2021

Upbit Trading Support Date: October 24, 2017

Quantity of Digital Asset Held: 2,081.84950412

Cumulative Sales Volume: No transaction history

Wallet Addresses:


b) 14mHARtJMifbK1wRKjtVpmt95ixucSiW5c

Holding Purpose: Holding digital assets acquired through exchange trades with LUNC (formerly LUNA).

Upbit reiterates its commitment to continue striving to provide a transparent and healthy trading environment.

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Upbit’s Massive LOOM Transactions Drive Market Fluctuations

Recent market activities indicate a significant movement of LOOM tokens associated with Upbit, a well-known digital asset exchange. Over the past 48 hours, Upbit has escalated the frequency of depositing LOOM to other exchanges, Binance and Bithumb, summing up to over 120 transactions. This movement, involving approximately 19 million LOOM tokens (valued around $6.76 million), coincides with a 35% dip in LOOM’s price within the same timeframe, according to Scopescan​.

A wallet affiliated with Upbit now reportedly holds a staggering 653 million LOOM, about 50% of the token’s total supply, valued at approximately $181 million​2​. Additionally, on a separate occasion, Upbit withdrew 11,081,386 LOOM, valued at $2.9 million, and the exchange’s total LOOM holdings now account for 49.45% of the token’s circulating supply​​.

The high concentration of LOOM tokens by Upbit and the recent massive transfers to Binance and Bithumb could potentially be influencing LOOM’s market liquidity and price stability. The substantial holding and movement of LOOM tokens hint at a possible market manipulation scenario, which might be a contributing factor to the observed price volatility. Over the last month, LOOM’s price surged over 1000%, increasing its market capitalization significantly before this recent dip​4​.

The pattern of LOOM token movement, especially between exchanges, warrants close monitoring by both regulatory authorities and market participants. The prevailing market conditions surrounding LOOM tokens, orchestrated by hefty transactions associated with Upbit, reflect a broader narrative of market dynamics in the burgeoning cryptocurrency domain.

LOOM is the native otken of Loom Network. Loom Network, based on Ethereum, serves as a platform for developers to build large-scale decentralized applications. Launched on October 1, 2017, it enhances smart contract computing power while reducing costs for certain tasks. By allowing interaction with off-chain third-party APIs, Loom enables developers to integrate their applications with external systems seamlessly without changing the programming language.

Utilizing Plasma for faster transactions, Loom addresses scalability issues prevalent in blockchain networks. It stands out by enabling Ethereum Solidity applications to run on side chains with tailored consensus mechanisms. The LOOM token, essential for membership, facilitates access to all apps on the network and the transfer of digital assets between Ethereum and Loom DAppChains. Through the zkLoom protocol, it leverages Ethereum’s security infrastructure, ensuring a secure, cost-effective blockchain environment.

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Upbit Singapore Acquires Preliminary MAS Approval for Major Payment Institution Licence

On October 16, 2023, Upbit Singapore Pte. Ltd. (Upbit Singapore), secured an in-principle approval (IPA) from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) licence, marking a pivotal step in the firm’s journey to fortify its digital asset venture in the region. This provisional approval allows Upbit Singapore to persist in rendering regulated Digital Payment Token services in alignment with the Payment Services Act 2019, while awaiting the issuance of the full license.

This move isn’t isolated but mirrors a broader regulatory narrative in Singapore, with notable entities like Sygnum Singapore, Coinbase, GSR Markets, Blockchain.com, and Crypto.com also securing MPI licenses.

Since 2018, Upbit Singapore has been laying robust foundations for a vigorous digital asset business in Singapore, a renowned financial hub in Asia. The IPA from MAS, a globally recognized financial regulator, represents a significant milestone that strategizes Upbit Singapore’s deeper penetration into the Singaporean market, which is seen as a nexus for digital asset innovation. This also symbolizes Singapore’s ongoing commitment to fostering innovation while ensuring consumer protection, thereby attracting committed innovators to its shores.

Alex Kim, the Founder and CEO of Upbit Singapore, emphasized that this approval is instrumental in unlocking new vistas for retail, institutional, and infrastructure-centric businesses. Moreover, Azman Hamid, the Chief Compliance Officer of Upbit Singapore, expressed immense pride in receiving the IPA, reiterating the firm’s unwavering dedication to nurturing trusted digital asset enterprises in Singapore. Through collaborative efforts with regulators and the community, Upbit Singapore envisions to augment Singapore’s stature as a leading hub for next-gen financial enterprises.

With the interim grant of the MPI license, Upbit Singapore is set to join the ranks of regulated digital asset exchanges under Upbit APAC, a significant global digital asset group. The group encompasses regulated digital asset exchanges in Indonesia and Thailand, along with VerifyVASP Pte. Ltd., a foremost Travel Rule solution provider for digital assets. This move is expected to fuel Upbit APAC’s ambition of broadening its global reach, catering to institutional and infrastructure-focused businesses, thus empowering dedicated builders in the digital asset domain.

Upbit Singapore is a wholly owned subsidiary of Upbit APAC Pte. Ltd. (Upbit APAC). The holding company, Upbit APAC, also operates other regulated digital asset exchanges and brokers under various jurisdictions, including Thailand’s SEC and Indonesia’s BAPPEBTI, further showcasing its global footprint in the digital asset ecosystem.

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South Korean Crypto Exchanges Reveal ‘Compensation Reserve Funds’; Upbit Leads with KRW 20 Billion

In light of the significant regulatory strides taken by South Korea in the cryptocurrency domain, the disclosure of ‘Compensation Reserve Funds’ by domestic crypto exchanges emerges as a resonating move toward bolstering financial safeguards in the burgeoning digital asset market. Leading the pack, Upbit has earmarked KRW 20 billion as a financial buffer, demonstrating adherence to the forthcoming regulatory landscape slated for full implementation in 2024.

The recent unveiling of reserve funds by South Korean crypto exchanges aligns with the broader regulatory agenda orchestrated by the government in 2023. Aimed at enhancing user protection, transaction transparency, and market discipline, the new regulatory framework underscores the government’s resolve to construct a robust infrastructure for digital assets. Central to this framework is the mandate for Virtual Asset Service Providers (VASPs) to establish reserve funds, a move epitomized by Upbit’s KRW 20 billion earmark.

The disclosure of compensation reserve funds by prominent exchanges such as Upbit, Bithumb, and Coinone, mirrors the disciplined approach envisaged by the regulatory framework. These financial cushions are devised to mitigate potential adversities like hacking or system failures, thereby reflecting the exchanges’ compliance with the imminent regulations. The reserve fund mandate forms a critical facet of the government’s strategy to instill a culture of financial prudence and accountability in the rapidly expanding cryptocurrency sector.

The unveiling of reserve funds is a precursor to the comprehensive regulations set to be rolled out in 2024. As the crypto ecosystem in South Korea continues to mature, adherence to such regulatory stipulations will likely foster enhanced trust and stability. The proactive disclosure by exchanges underscores their preparedness to navigate the evolving regulatory terrain, setting a precedent for market discipline as South Korea marches toward a structured digital asset marketplace.

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Hacking Attempts on Upbit Surge to 159,061 in First Half of 2023

Hacking attempts on South Korea’s largest cryptocurrency exchange, Upbit, have surged to 159,061 in the first half of 2023, according to data submitted to the National Assembly. The figure represents a 2.17-fold increase compared to the same period last year. Lawmaker Park Sung-jung criticizes the ambiguous role of the Ministry of Science and Technology in regulating the exchange.

Surge in Hacking Attempts

Data submitted by Dunamu, the operator of Upbit, to the National Assembly’s Science, Technology, Information, Broadcasting, and Communications Committee revealed that hacking attempts on the exchange reached 159,061 in the first half of 2023. This marks a 2.17-fold increase from the 73,249 attempts recorded in the first half of 2022.

Escalating Concerns

The number of hacking attempts on Upbit has been on a steady rise. The figures for the second half of 2020, first half of 2021, second half of 2021, first half of 2022, and second half of 2022 were 8,356, 34,687, 63,912, 73,249, and 87,242, respectively. Upbit suffered a significant loss of approximately 58 billion KRW (~$49 million) due to a hacking attack in 2019.

Security Measures and Criticism

In response to the rising threats, Dunamu stated that they manage over 70% of their assets in cold wallets and operate hot wallets in a distributed structure. Cold wallets are offline cryptocurrency wallets, while hot wallets are online but less secure. Despite these measures, lawmaker Park Sung-jung criticized the unclear role of the Ministry of Science and Technology in managing and supervising the exchange.

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Cryptocurrency Exchange Upbit’s Operator Dunamu Announces Q2 2023 Net Profit of KRW 108 Billion

The most recent quarterly report suggests that Dunamu, the company that is responsible for operating the cryptocurrency exchange Upbit, had a net profit of KRW 108 billion during the second quarter of 2023 (April-June), when the period in question was measured. The report includes this data in its comprehensive analysis. In stark comparison to the KRW 37.8 billion net loss announced in the second quarter of the prior year, the current figures show a profit of KRW 5.2 billion.

For this quarter, the company registered a revenue of KRW 186.6 billion, marking a 47.9% decline from the KRW 358.1 billion reported in Q2 2022. Despite this, the quarter’s net profit showcased a positive direction. After adjustments, the operating profit stood at KRW 86.6 billion, reflecting a 68.9% decrease from earlier figures.

Dunamu’s research indicates that “A global liquidity squeeze and extended economic slump have affected investor confidence,” resulting in decreased sales.This is because of the global liquidity crunch and the prolonged economic downturn. In addition, the company said that a rise in the value of virtual assets in comparison to 2022 contributed to the development in net profit. This was stated in reference to the growth in net profit.

Since 2022, Dunamu has been required to submit its business reports on a semi-annual basis since the company falls into the group of companies that are required to carry out external audits because it has more than 500 shareholders for each security. This obligation has been placed on Dunamu due to the fact that it belongs to the category of organisations that are required to carry out external audits.

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Upbit Announces Next LUNA2 Airdrop for LUNC Holders

Upbit, the South Korean-based cryptocurrency exchange, has detailed its plans for the forthcoming LUNA2 airdrop targeting LUNC holders. LUNC, previously known as LUNA, underwent a rebranding and its holders are now on the cusp of receiving LUNA2 tokens.

Snapshot Insights

The LUNA2 airdrop is slated to kick off in the next 24 hours.

A staggered distribution approach has been adopted, with 70% of the airdrop tokens to be rolled out over a span of 24 months.

Two pivotal snapshots were captured to determine the airdrop’s distribution:

  1. First snapshot: 2022-05-07, 22:59:37 (SGT) at block height 7,544,910. Exchange rate: 1 LUNC = 1.034735071 LUNA2.

  2. Second snapshot: 2022-05-27, 00:38:08 (SGT) at block height 7,790,000. Exchange rate: 1 LUNC = 0.000015307927 LUNA2.

A bonus provision is in place: LUNC holders with a balance exceeding 10,000 at the first snapshot’s time will be entitled to an extra 30% of the initial airdrop during the second phase.

Caveats to Consider

Upbit’s endorsement of the airdrop doesn’t equate to a trading green light for LUNA2 on their platform.

UNA2 airdrop quantities will be truncated to a maximum of 8 decimal places.

Monthly LUNA2 airdrop quantities are subject to change, contingent on the vesting release strategy, a decision resting with the token’s governing foundation.

The Upbit team signed off the announcement, reiterating their commitment to their user base.

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Upbit Announces Listing of Layer 1 Blockchain SEI

Upbit, a globally recognized digital asset exchange, has announced the addition of a new digital asset, SEI, to its KRW and BTC markets. The announcement was made on August 14, 2023, and provides detailed information about the listing and associated guidelines.

SEI Token Listing Details

SEI, the native token of the Sei network, will be supported for deposits only on the Sei network (other networks like BSC will not be supported). The support for SEI deposits and withdrawals is scheduled to commence on August 15, 2023, at 21:00 KST.

Trading Guidelines

Trading Support Time: The exact time for the commencement of trading will be announced later.

Initial Order Limitations: For the first 5 minutes after the new digital asset is added, buy orders will be restricted.

Initial Price Limitations: The initial 5-minute sell order price limit will be announced later, reflecting other exchange rates.

Market and Reserved Order Limitations: For the first hour after the addition of the new digital asset, market and reserved orders will be restricted.

Deposit Considerations

Deposits from exchanges not included in the VV linkage (including account owner verification service linkage) list may require review and may take a long time to reflect or be returned.

Deposits and withdrawals are only possible to and from personal wallet addresses that have completed ‘ownership verification.’

High-value digital asset deposits with unclear origins may require origin verification, and if not completed by the trading support start time, the deposit may not be reflected.

Investment Risk Warning

Upbit has warned that digital asset investment is exposed to rapid price fluctuations due to speculative demand and changes in domestic and international regulatory environments. Investors are urged to carefully review project information and understand the characteristics of digital assets before trading.

About SEI 

SEI is a Layer 1 blockchain specialized in the DeFi sector, aiming to build a base layer for decentralized finance. It has built its own transaction settlement engine at the network level, shared by dApps built on Sei, to provide deep liquidity. SEI utilizes the Tendermint consensus algorithm’s efficiency and parallelization technology to improve network processing ability and block creation time. SEI tokens can be used for transaction fee payments, validator staking participation, on-chain governance participation, and as a payment method within the network.

Additional Information

SEI is the first project to be supported for trading both domestically and internationally. Initial token circulation is 1,800,000,000 SEI, approximately 18% of the total issuance of 10,000,000,000. Attention is needed regarding the network’s smooth operation and stability after network launching.

Binance has also announced the listing of Sei (SEI) along with CyberConnect (CYBER). Trading for these new assets is set to commence on August 15, 2023, at 12:00 (UTC), aligning with the timeline for SEI’s listing on Upbit.


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