The cryptocurrency exchange Dunamu endured a difficult year with their decrease in sales, hacking and poor performance from their subsidiary companies. According to the audit report released on the 14th, the company’s total revenue was 13.27 billion Korean won, down 72% compared to 2018. Net sales also plunged from 14.44 billion won to 2.16 billion won as sales fell sharply.
Majority of its revenue comes from the exchange Upbit. The main reason for this drop in revenue seems to be due to the stagnant trading volume from the market downturn. The representative explained that “in 2018, the cryptocurrency-craze brought a large revenue from the transaction fees, which then recorded an exceptional level of performance for us” and that “last year the market slowed down and the volume of transactions decreased, affecting the overall performance.”
The hacking of large amount of Ethereum also affected the performance. Upbit released a statement last November, noting that 342,000 Ethereum was withdrawn to a unknown wallet from their Upbit Ethereum hotwallet. The company will be filling in the loss from the hacking with its own asset, which comes to about 5.84 billion won.
The company’s subsidiary companies didn’t do well either. According to the financial audit report, the companies totaled their revenue at 14.02 billion won last year. This isn’t far from what Dunamu made; moreover, the net income was decreased by approximately 10 billion won compared to the financial statement.
Dunamu took an offensive investment stance since Upbit was founded on 2017, though the outcome hasn’t been up to the expectations. Futurewiz made 7.5 billion won in revenue with 3.2 net loss last year. Dunamu Investment marked 100 million won in revenue with 1.2 billion in net loss, RootOne Soft made 200 million won but marked 1.2 billion won in loss, and Lambda256 made only 23 million won but with whopping 2.3 billion won net loss. Moreover, DXM didn’t make any money and recorded a net loss of 1.9 billion won.
Only two companies – EZSNetworks and Dunamu and Partners – marked an actual profit, recording 190 million in revenue with 100 million in net profit and 660 million net profit, respectively. The profits from the sale of investment assets of Dunamu Partners were classified as non-operating profit. All in all, the total net loss from all of these subsidiary companies amount to 10 billion won.
Among the subsidiaries, RootOne Soft will be bought out by the customer company MonsterCube, which then will allow ‘bitberry’ service to continue. However, the profitability of the product remains a question.
