Dunamu's Virtual Assets Decrease by 39.6%, Bithumb Falls by 30.5%

The valuation of virtual assets held by domestic cryptocurrency exchanges Upbit and Bithumb decreased by 30-40% by the end of the first half of this year. According to the Financial Supervisory Service's electronic disclosure, Dunamu's valuation of its own virtual assets is 1.38 trillion KRW, down 39.6% from the end of last year. Bithumb's valuation is approximately 194.1 billion KRW, a decrease of 30.5%. The value of virtual assets held by the two exchanges has shrunk by about one-third over the past six months. The virtual assets held by the exchanges differ from customer deposit assets and include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Tether (USDT). When market prices fall, the book value decreases, which may be reflected as impairment losses in the income statement. Dunamu operates Upbit, while Bithumb is considered a major exchange. The business structures of both companies are sensitive to trading volumes and the flow of virtual asset prices. Dunamu's directly held virtual assets are recorded as 14,505 BTC, 12,327 ETH, and 11,554,754 USDT. Bithumb's holdings include 294 BTC, 3,138 ETH, and 60,869,264 USDT. The decrease in valuation does not indicate a reduction in customer deposit assets, as customer entrusted assets reflect the quantity and price changes of what users have deposited. The impact on the exchanges' performance should be assessed through the income statement items in the semi-annual report and the flow of virtual asset prices in the second half of the year.