UPbit, biggest crypto exchange in South Korea, recorded a profit of $100 million for the 3rd quarter of 2018, despite the bearish market and the declining trading volume.
As per Repository of Korea’s Corporate Filings (DART) reports which came in Korean media outlet, Yonhap, UPbit is currently seeing a profit of $100 million while Bithumb, it’s major competitor, recorded a profit of $39 million.
Bithumb’s Profit Shrunk From $400 Million to $39 Million
Upbit Overtakes Bithumb
This is UPbit’s best quarter since they have foreshadowed their closest competition, Bithumb by almost three times.
As compared to last year, Bithumb has seen a great depreciation in their profit numbers going from $400 million to now less than 20% of it in this quarter with $39 million.
Having said that, this great depreciation in numbers shouldn’t be solely dedicated towards low trading volume of bearish market instead to the $40 million Hack experienced by the platform in June and the after effects of the hack including a month of no operations and time taken to enhance their security.
To add to the aforementioned points, Bithumb also took an initiative cover all the user funds that were stolen in the hack attack which surmounts to more than $20 million. Therefore, if the bithumb hack attack hadn’t happened three months back, their quarterly profits this year could have been around $70 million, somewhere in the range of UPbit.
The cryptocurrency market had taken the UPbit’s growth quite unexpected, since it’s growth was exponential in last eight months. In 2017, after two months from its launch, UPbit claimed a profit of $100 million with $1.2 billion worth of total corporate holdings.
This year, UPbit has surpassed Bithumb for the race of largest cryptocurrency exchange in South Korea which had $648 Million crypto industry in 2017.
Major factors for the enhanced profits of UPbit is speculated as the involvement of Kakao and Dunamoo, their subsidiary company, in UPbit’s operations. Some analysts have said that the involvement of Kakao and its subsidiary company Dunamoo in the operation of UPbit providing them with status of legitimacy and decades of track record, which subsequently became their edge over Bithumb.
In addition to that, Kakao recently launched Kakaopay which after it’s launch has gained 90% of the country’s market share. Kakaopay also stated their intent of integrating themselves with cryptocurrency and UPbit seems to be compatible with them too.
UPbit VS South Korean Government
Interestingly, 2 months ago, South Korean Government raided UPbit’s offices seizing their assets i.e. servers, computers, and hard drives. But they were cleared of all the charges since no evidence of suspicious activity or any illicit trading were not found by the authorities.