Dunamu, the operator of the cryptocurrency exchange Upbit, announced on the 15th that its net profit for the first quarter of this year was approximately 2.37 billion dollars.
This represents a 20.8 percent increase compared to the same period last year, when net profit was 1.98 billion dollars, but a 39.1 percent decrease from the previous quarter’s 3.90 billion dollars.
Dunamu’s consolidated revenue for the first quarter was approximately 3.82 billion dollars, marking a 2.8 percent decrease from 3.94 billion dollars in the same quarter last year, and a 31.5 percent decline from 5.59 billion dollars in the previous quarter.
Operating profit for the first quarter stood at 2.94 billion dollars, up 18.1 percent year-on-year from 2.49 billion dollars, but down 34.8 percent compared to 4.50 billion dollars in the previous quarter.
The company attributed the year-on-year earnings improvement to increased investor sentiment in cryptocurrencies at the end of last year following the election of Donald Trump as U.S. President. However, earnings declined quarter-on-quarter due to a market slowdown caused by tariff tensions and other factors.
A Dunamu official explained that Bitcoin has dominated market sentiment, which has led to decreased interest and trading volume for altcoins.
Meanwhile, Dunamu also announced it will spin off its unlisted stock trading platform Securities Plus Unlisted into a new company called Securities Plus Unlisted Co., Ltd.
Dunamu will retain 100 percent ownership of the new company. The spinoff will take effect on July 1 at midnight.
A Dunamu official stated that, in accordance with financial authorities’ plans to institutionalize the innovative financial services regulatory sandbox, Securities Plus Unlisted intends to apply for a brokerage license. The official added that, under the Capital Markets Act, a licensed broker may only conduct licensed brokerage services and related permitted operations. Therefore, Dunamu is establishing a separate legal entity through a physical spinoff to conduct brokerage business independently.
