Fri. Feb 3rd, 2023

Sales of major domestic exchanges fell sharply in the first half of the year due to cold winds in the virtual market market, a report showed.

According to the virtual asset industry on the 19th, Bithumb Korea’s sales in the first half of this year were 204.7 billion won, operating profit was 122.9 billion won, and net profit was 749.93 million won. Last year, Bithumb Korea’s sales were 1.992 trillion won, operating profit was 782.1 billion won, and net profit was 648.3 billion won. For the first time in six months, sales plunged 79%, operating profit 84%, and net profit 98%. earnings per share also plunged 98% in six months from 153,423 won to 1,770 won.

Bithumb’s sales plunged due to a sharp drop in transaction fee income, which accounts for a significant portion of sales. According to the semi-annual report, sales of Bithumb transaction fees in the first half of last year were 608.6 billion won, but in the first half of this year, it fell to 204.7 billion won, a third.

Coinone was also unable to avoid the impact of the virtual market downturn. According to the semi-annual report by Com2us Holdings, the second-largest shareholder of Coinone, Coinone’s sales in the first half of this year were 22.4 billion won and net profit and loss were 14.9 billion won. Last year, Coinone’s sales were 173.5 billion won, operating expenses were 54.4 billion won, and net profit was 70.8 billion won. In six months, sales fell by about 99 percent.

The industry believes that other exchanges such as Upbit and Corbit have also been hit hard by their performance. In fact, Upbit sales in the first quarter fell 28.6% year-on-year to 426.8 billion won. Operating profit was 287.8 billion won, down 46.9% from the previous year, and net profit was 206.8 billion won, down 64.1% from the previous year. Upbit is planning to disclose its second-quarter earnings at the end of this month.

An official from the virtual asset industry said, “In the first half, the overall market trend was bad due to various unfavorable factors such as worsening market sentiment due to the rapid quantitative tightening of the U.S. Fed, the fall of Terra Luna, and a series of bankruptcies due to the Selcius Bank Run crisis. “In the second half of the year, the market is generally moving upward due to expectations for upgrading Ethereum merge, which is expected to improve,” he said.

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