The South Korean cryptocurrency exchange market exhibits stark polarization, with leading platforms Upbit and Bithumb experiencing significant valuation growth while smaller rival Coinone faces financial difficulties.
Upbit, operated by Dunamu Inc., has seen its stock price surge 33% year-to-date to reach 240,000 won ($173). This performance positions Dunamu with an estimated market capitalization of 8.26 trillion won ($5.96 billion), underscoring its dominant position.
Fellow major exchange Bithumb has witnessed an even more dramatic valuation increase, its stock price jumping 131% to 238,000 won ($172). This surge peaked on July 4th during a broader summer rally, highlighting strong investor confidence. Bolstered by this performance, Bithumb is actively pursuing a listing on the Kosdaq market, with a target date set for the fourth quarter.
In contrast, Coinone struggles significantly. Holding only about 3% of the total market share, the exchange reported substantial operating losses of approximately $4.4 million last year. To manage its financial deficit, Coinone was forced to liquidate assets, a situation fueled by the highly concentrated market.
Market structure heavily favors the largest players. Data indicates Upbit commands an estimated 63% of domestic trading volumes, with Bithumb holding a significant 33%. This concentration leaves exchanges like Coinone with limited growth avenues.
As a consequence of its declining position and financial strain, Coinone is reportedly engaged in talks regarding a potential acquisition, aiming to find a sustainable path forward within the competitive landscape.