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By Anna J. Park
Major cryptocurrency exchanges based mostly in Korea, together with Upbit and Bithumb, are within the highlight following the profitable Nasdaq debut Wednesday of U.S.-based cryptocurrency alternate Coinbase, which closed up 31.3 p.c at $328.28 on its first day of buying and selling.
Given that Coinbase’s market cap was valued at over $87 billion based mostly on the primary day’s closing value, expectations are mounting over the expansion potential and attainable elevated market valuation of Korea’s largest cryptocurrency alternate operator, Dunamu.
According to the CoinMarketCap website, Upbit’s 24-hour transaction quantity stood at $14.5 billion as of two:10 p.m. Korea time, which is 2.8 occasions larger than Coinbase’s $5.1 billion. Upbit’s 24-hour buying and selling quantity has always ranked among the many world’s high three recently, far exceeding the U.S.-headquartered crypto alternate.
Bithumb is true behind Upbit by way of its 24-hour transaction quantity at $3.4 billion. Coinone took the third spot among the many nation’s native cryptocurrency exchanges with $1.3 billion traded.
The whole buying and selling quantity of those high three performers in Korea has been virtually equal to or usually above the typical day by day buying and selling quantity of the nation’s benchmark KOSPI market this 12 months, which is about 19.3 trillion received ($17.2 billion).
The variety of customers in addition to their revenues have additionally grown quickly, particularly for Upbit. The variety of clients at Upbit stood at 3.2 million final month, which is up almost three-fold in comparison with January.
In phrases of annual income, Dunamu ― the operator of Upbit ― noticed its 2020 web revenue surge 308 p.c from the earlier 12 months to 47.7 billion received. The firm’s annual income in 2020 rose 26 p.c year-on-year to 176 billion received, whereas working revenue stood at 86.6 billion received.
The agency’s month-to-month income and working revenue throughout the first two months of this 12 months exceeded your complete determine for final 12 months, with gross sales reaching 290 billion received and working revenue 260 billion received in simply January and February. The firm can also be stated to personal a number of hundred bitcoins ― which it obtained as buying and selling charges ― as belongings, whereas it additionally has a couple of trillion received in money.
Based on this stable progress, Dunamu’s market valuation has quick grown to about 16 trillion received on the native OTC (over-the-counter) market, greater than tripling in lower than a month. Market specialists additionally say Upbit’s market cap has rather more room for progress contemplating its income and earnings in comparison with Coinbase.
Dunamu’s official place that it has left all potentialities open, hinting at a attainable itemizing within the U.S., which can also be boosting the agency’s enchantment amongst traders.
Bithumb sees revenue improve amid M&A hypothesis
While Dunamu would possibly purpose to go public within the U.S., its competitor Bithumb is more likely to be offered off, though particulars have but to be revealed.
Following a failed try and promote it in 2018, there have been rumors of potential bidders early this 12 months, together with main world monetary firms reminiscent of Morgan Stanley, VISA, and JPMorgan. However, the three companies all denied such rumors final month to The Korea Times.
Naver was additionally talked about as a possible bidder to accumulate Bithumb Korea, however the Korean web search portal denied that chance, in line with different native media. The Korean-Japanese recreation firm Nexon had additionally reportedly been cited as a bidder earlier this 12 months, but no settlement was reached as the 2 sides didn’t slim their variations over the sale value. Due to the cryptocurrency alternate’s sophisticated stake construction, market watchers say an IPO is unlikely.
While remaining not sure of its future path, whether or not it’s an IPO or sale, Bithumb’s earnings have grown markedly recently. Its web revenue of 141 billion received in 2020 was up 279 p.c from the earlier 12 months, whereas its annual income of 218.5 billion received in 2020 was up 51 p.c.