Dunamu, the South Korean fintech company behind the country’s dominant crypto exchange Upbit, saw its first-quarter operating profit plunge 78% year-on-year to 88 billion won (approximately $59 million), according to reports.
The company disclosed through the Financial Supervisory Service on the 15th that first-quarter consolidated sales fell 55% year-on-year to 235 billion won, compared with 516 billion won last year. Operating profit dropped from about 396 billion won to 88 billion won.
Net profit also declined by 78% year-on-year, reaching approximately 70 billion won versus nearly 321 billion won in the same period last year. Dunamu cited reduced trading volume in the virtual asset market caused by the global economic downturn as the main reason for weaker earnings.
Since transaction fees make up 97% of the company’s revenue, shrinking market activity also impacted customer deposits. Deposits stood at around 5 trillion won in the first quarter, down 11% from the end of last year.
Dunamu secures $670 million Hana Bank investment in major crypto banking deal
