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.
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.
Upbit Faces Declining Crypto Prices
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.
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.
Additionally, Dunamu is intensifying efforts to strengthen its security infrastructure amidst a significant rise in hacking attempts on Upbit. Despite facing 159,000 hacking attempts in the first half of 2023, the exchangehasn't reported any breaches since it experienced an exploit that led to a loss of $50 million in 2019.
Recently, Dunamu presented the alarming figures on Upbit 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.
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.
Aiming for Growth and Global Expansion
Upbit Singapore received an in-principal approval 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 PaymentsServices Act while awaiting full approval.
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.
Singapore has become an appealing destination for crypto firms seeking to expand across the Southeast Asian market due to clear crypto regulations.
This article was written by Jared Kirui at www.financemagnates.com.
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