Dunamu, the company behind South Korea's dominant crypto exchange Upbit, disclosed a 78% year-on-year profit decline for the first quarter of 2026. The sharp drop underscores how even the biggest exchanges can't escape a market downturn—and it's putting pressure on operators to find new ways to make money beyond just trading fees.
The 78% haircut
Dunamu reported the earnings slide this week, citing a broad slowdown in digital asset trading. The company doesn't break out Upbit's numbers separately, but the exchange accounts for the lion's share of its revenue. With trading volumes down across the board—Korean retail investors have pulled back as Bitcoin and altcoins tread water—the fee income that once gushed has slowed to a trickle.
It's a stark reversal from 2024 and early 2025, when Upbit rode the post-halving frenzy to record profits. Now, the hangover is real.
Why this isn't just Upbit's problem
The profit drop is a warning sign for the entire exchange industry. Crypto platforms have long relied on trading fees as their primary—often only—revenue stream. When the market goes quiet, so does the cash register. Dunamu's results show that even a market leader with deep liquidity and a loyal user base can't insulate itself from a cyclical slump.
Regulators in South Korea have also tightened rules around token listings and investor protection over the past year, adding compliance costs that eat into margins. That makes the need for diversified income more urgent.
What Dunamu might do next
Dunamu has been experimenting outside pure exchange services. It operates a blockchain unit, invests in Web3 startups, and runs a token listing advisory business. But those ventures are still small compared to the core exchange. The company said in its earnings release that it is “working to strengthen non-trading revenue” but didn't offer specifics.
Analysts following the company expect Dunamu to push harder into stablecoin products, custody, and perhaps even a regulated securities token offering platform—though South Korea's financial authorities have been slow to approve such moves.
For now, the pressure is on. With no clear catalyst to revive retail trading enthusiasm, Dunamu's next few quarters will test whether it can build a more resilient business model—or whether it's just along for the crypto rollercoaster.
