tl;dr
Korean cryptocurrency exchanges Dunamu and Bithumb have seen significant share price increases this year, with Dunamu's stock rising 33% and Bithumb's soaring 131%, driven by strong market positions and Bitcoin's rally. Both plan potential public offerings, with Bithumb aiming for a Kosdaq listing b...
Korean cryptocurrency exchanges Dunamu and Bithumb have experienced dramatic share surges this year, contrasting sharply with Coinone's decision to liquidate crypto holdings amid a bull market. The divergent fortunes highlight a growing divide as market leaders enjoy soaring valuations while smaller exchanges face financial strain.
Dunamu, the operator of Upbit, has seen its private stock price climb 33% year-to-date to 240,000 won ($173), with an estimated market capitalization of 8.26 trillion won ($5.96 billion). Bithumb has outperformed even more impressively, soaring 131% to 238,000 won ($172). Both exchanges hit peak valuations during the summer rally—Dunamu at 258,000 won and Bithumb at 275,000 won—reflecting renewed optimism as Bitcoin repeatedly set new yearly highs.
Both exchanges are gearing up for potential public offerings in the near future, with Bithumb targeting a Kosdaq listing by late 2025. Their commanding market positions and strong trading volumes provide a solid foundation for these ambitious plans.
In contrast, smaller exchange Coinone struggles with just 3% market share amid escalating pressure from dominant players. The company announced plans to sell $2.96 million worth of cryptocurrencies—about 10% of its total digital asset holdings—marking the first liquidation under new regulatory guidelines introduced in May. These regulations enable transparent crypto asset sales for operational funding but limit sales to the top-20 cryptocurrencies and require advance disclosure.
Coinone's liquidation aims to cover operational expenses like personnel costs rather than infrastructure investments, signaling urgent liquidity issues. The exchange reported $4.4 million in operating losses last year, extending deficits to three consecutive years. Following staff reductions, Co-CEO Lee Sung-hyun now handles multiple roles. Industry experts suggest this restructuring may precede potential acquisitions.
The sector increasingly favors scale, as revenue models heavily depend on trading volumes. With Upbit controlling 63% and Bithumb 33% of the market, smaller competitors like Coinone face limited room to maneuver, highlighting a growing concentration in Korea's cryptocurrency exchange landscape.