South Korea’s Crypto Volumes Surge as Woori Considers $300M Upbit Exit
South Korea is currently experiencing a significant spike in crypto trading volumes, with Woori Technology, a South Korean venture capital firm, reportedly considering selling its stake in Dunamu, the parent company of the Upbit crypto exchange. This potential move could reshape the crypto landscape in the East Asian country.
The Background
Woori Technology initially invested 5.5 billion KRW in Dunamu back in 2015, acquiring an undisclosed share in the company. Fast forward nearly nine years, the firm now holds a 7.22% stake in Dunamu, which is currently valued at around 425.3 billion KRW, equivalent to over $300 million. Reports suggest that the sale price could exceed this market value, potentially offering Woori a return of over 100 times its original investment.
The Situation
Amidst these developments, South Korean authorities are investigating Upbit for various issues, including potential Know-Your-Customer (KYC) violations and concerns over its dominance in the local market. These investigations coincide with a period of political unrest in the country, triggered by President Yoon Suk Yeol’s declaration of emergency martial law on Dec. 3, which was later reversed after six hours. This political turmoil has had a significant impact on the local crypto market.
The Surge in Trading
Following President Yoon’s declaration and subsequent reversal, the local crypto market experienced a flurry of trading activities. Blockchain analytics platform Kaiko observed an initial selling of 18 billion KRW worth of Bitcoin within the first thirty minutes. This selling pressure continued throughout the day, particularly affecting XRP trading on platforms like Bithumb.
Local exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, recorded a substantial increase in trading volume. Upbit alone saw a 44.7% rise in trading activity, reaching nearly $28 billion in the past 24 hours. This surge in trading reflects the heightened interest and activity in the South Korean crypto market amidst ongoing political and regulatory developments.
In the midst of these shifting dynamics, Woori’s potential exit from Upbit could have far-reaching implications for the local and international crypto ecosystem. Stay tuned for more updates on this evolving story.