South Korean cryptocurrency exchanges UPbit and Bithumb have experienced massive losses in revenue over the past year.
According to a report by Decrypt, South Korea’s leading cryptocurrency exchanges UPbit and Bithumb have witnessed a drop in revenue of 70 percent and 63 percent, respectively, over the past year. Data from the Financial Supervisory Service (FSS)’s electronic system shows year-over-year annual profits for UPbit parent company Dunamu fell by 93% to $7.4 million.
The report attributed the substantial drop in sales for both companies to a decrease in demand for cryptoassets in the South Korean market since 2018. Bithumb averaged more than 1.2 million BTC in monthly trades during the peaks of 2017 and 2018. However, trading volume declined 75 percent during the peak months of 2019 and 2020, averaging around 300,000 BTC in monthly trades.
UPBit trading volume also declined from a peak of 1.35 million BTC in monthly trades during 2017 to around 250,000 BTC in 2020.
The report claims that trading volume across the board for all major South Korean cryptocurrency exchanges has fallen by 60 to 80%.
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