Upbit Parent Firm Posts Over 70% Decline in Profits in Q3
According to the latest report, Dunamu’s sales declined by over 66% compared to the same period last year, in addition to its operating profit sliding by 76.6% and net profit by 72.7%.
Moreover, the fintech firm’s sales and operating profit decreased by 24.1% and 39.3%, respectively, compared to the second quarter.
- Dunamu explained that the dwindling figures in “global liquidity and the overall contraction of the capital market” are to blame. However, the firm added that Upbit’s performance in the crypto winter was a major factor in its massive decline in sales and profits.
- Upbit’s parent firm was sued by an investor in September this year for allegedly delaying a transfer of LUNA tokens for over a month.
- According to local media, Dunamu extended trading prohibitions on the relatives of its executives and employees as a preemptive measure to improve “ethical management.”
- It has been restricting crypto trading for kins of its executives and staff since August this year. Initially, the restriction was imposed only on executives and staff themselves.
- The market appears to be floundering in the aftermath of FTX’s implosion, as well as the broader downturn.
- Over the past two months, there has been an enormous rate of withdrawal from centralized exchanges as investors and traders seek to mitigate the risks.
- Several platforms are currently struggling due to the broader crypto contagion narrative.
- For instance, the stock price of Coinbase also tanked to an all-time low of $40.6 last week despite assuring that it had no exposure to FTX’s token FTT.
- The bankruptcy prompted a chain reaction in South Korea’s cryptocurrency-linked stock as well.
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