Cryptocurrency exchanges are reeling from the global crash.
Dunamu, which operates South Korea’s largest cryptocurrency exchange Upbit, announced Monday that it suffered a net loss of 34 billion won (US$1 = 1,348 won) in the second quarter.
Sales plummeted 75% to KRW 358.2 billion and operating profit fell 79% to KRW 278.2 billion. However, the hardest hit was the decline in the value of the cryptocurrencies held, resulting in a loss of 372.5 billion won.
“Cryptocurrency markets have shrunk due to reduced global liquidity, resulting in lower revenues and operating profits, and a significant drop in the value of Bitcoin and other digital assets in inventory, resulting in huge losses.” said the staff.
Second-placed Bithumb posted a 66.4% year-on-year decline in revenue to KRW 205 billion in the first half of the year, and a 77% drop in operating profit to KRW 123 billion. The exchange managed to make a net profit of KRW 7.5 billion for him, but customer deposits fell from KRW 2.23 trillion to KRW 1.6 trillion at the end of 2021.
Domestic cryptocurrency exchanges struggle to find new revenue streams such as non-fungible tokens (NFTs), but the outlook is bleak.
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