The nation’s two largest crypto alternate operators — Dunamu and Bithumb Korea — each recorded a hike in sales and income final yr, backed by elevated transactions from November, when the biggest digital coin Bitcoin rose above 20 million received ($17,640) for the primary time in 34 months.
Dunamu, the operator of the biggest cryptocurrency alternate, additionally recorded multiple-digit progress final yr. The firm noticed a 26 % soar in sales to 176.6 billion received whereas its income jumped 391.1 % to 46.4 billion received year-on-year. Dunamu’s sales embody the corporate’s buying and selling platform of unlisted firms, however the largest portion of sales is attributed to crypto buying and selling charges.
According to Vident‘s annual report, Bithumb Korea’s sales have been 219 billion received final yr, up 51.4 % from 2019. Net revenue soared 873.5 % from 13.1 billion received to 127.4 billion received throughout the identical interval. Vident owns 10.3 % in Bithumb Korea and 34.24 % in Bithumb Holdings, which is the biggest shareholder of Bithumb Korea.
Another gauge of crypto exchanges’ progress is the variety of new accounts at three business banks that established partnerships with the nation’s 4 largest crypto exchanges. Shinhan, NH Nonghyup and Ok financial institution fetched a mixed 1.4 million new accounts in January alone, a 31 % improve from the identical month final yr. Ok financial institution, the one native lender that points real-name accounts for Upbit customers, added 2.34 trillion received in financial savings stability, 50 % up from January.
“There started a rise in buying and selling from final November. If excessive buying and selling quantity continues all through this yr, cryptocurrency exchanges will take pleasure in a stellar efficiency this yr,” an official at one of many 4 largest exchanges stated.
According to information from the Financial Services Commission earlier this month, the full transactions on the 4 exchanges coping with digital cash reached 445 trillion received from January 1 to February 25. The determine already exceeded the transaction quantity of all of 2020, which was 356.2 trillion. On day by day foundation, the typical buying and selling quantity was 7.94 trillion received a day through the aforementioned interval.
Meanwhile, the expansion in crypto exchanges is elevating expectations for enhanced valuation for their companies.
Bithumb, which has been in search of a purchaser since August final yr, is getting renewed consideration from buyers hoping to purchase a stake within the firm. Local media reported NXC, the holdings firm of recreation maker Nexon, Naver, Visa Card and Binance are amongst firms that expressed curiosity in Bithumb.
Morgan Stanley, which was additionally reportedly desirous about Bithumb, issued an announcement on Monday and denied the studies.
An analyst from boutique analysis agency Research Arum stated that Dunamu’s valuation might improve as soon as Coinbase, the No.1 crypto alternate within the US, goes public this spring.
“If Coinbase gives the market capitalization of 100 trillion received, Upbit might get at the least one-tenth of that valuation contemplating the excessive buying and selling quantity there,” analyst Choi Sung-hwan stated in a report.
By Park Ga-you([email protected])