UPbit Exchange Clears $100 Million in Q3 Despite Crypto Bear Market Conditions
Korean Crypto Exchange UPbit Profits in Bear Market
UPbit, a South Korean crypto exchange, profited in a bear market by $100 million. The Repository of Korea’s Corporate Filings (DART) released data indicating that in addition to UPbit’s profits, Bithumb, the country’s second-largest trading platform, also made a profit of $35 Million.
The third quarter has been one of the best quarters for UPbit since launching in 2017. At one point, Bithumb profited by $400 million, but the profits declined significantly, thereby putting UPbit in the lead. Bithumb’s decline in profits is not attributed to the crypto market activity decline in South Korea, but rather, the $40 million security breach that occurred in June. The platform also failed to secure its platform by overhauling the security system and internal management system.
Experts in Korea’s crypto sector were surprised by UPbit’s significant growth in the past eight months. Two months from its launch, the platform recorded a profit of $100 million and corporate holdings totaled $1.2 billion. This year, the platform surpassed Bithumb and became the largest crypto trading platform in the country in areas such as volume, user base, corporate assets, and revenue.
There are those who also state that Kakao’s involvement and that of its subsidiary company Dunamoo had a vital role in enabling UPbit to emerge as a global crypto exchange. Further, Kakao recently launched KakaoPay which gained 90 percent of the country’s fintech market share. The platform is compatible with UPbit. It is expected that the compatibility will positively affect UPbit as it goes forward, including when it comes to the platform’s profit margin.
Even with the good news, UPbit is facing some push-back by the government. South Korea raised the platform’s offices and seized its servers, computers, and hard drives. Even after two months, financial authorities did not find evidence of suspicious activity and illegal trading.