Of the top four crypto exchanges in South Korea, only one managed to finish 2018 in the black.
This finding adds to a growing list of negative outcomes faced by firms in the cryptocurrency sector during the challenging 2018 market conditions, where, over the year, cryptocurrency prices values dropped steeply, by as much as 80 percent across various platforms.
Upbit: Emerging as the sole 'Big Four' exchange that stayed profitable in 2018.
Reporting from Business Korea indicates that Upbit was the only member of the major four exchanges to achieve positive cryptocurrency exchanges in South Korea posted profit revenue figures for 2018. The other three exchanges – Coinone, Korbit, and as recently reported by Blockonomi , Bithumb, all recorded losses in 2018.
Dunamu Inc.'s financial records, operators of Upbit, highlight a net income of 140 billion won ($123 million) for the platform. This exchange reported revenues of 470 billion won ($413 million) alongside an operating profit exceeding 287 billion won ($252 million).
Upbit's expenses for that year tallied up to 96.5 billion won ($84 million). Overall, their performance outstripped 2017's figures, boasting a profit margin increase of almost 100 percent.
In stark contrast, Coinone's audit illustrates a net loss of 5.80 billion won ($5 million). Korbit faced a net loss of about 45.80 billion won ($40 million) in 2018.
Bithumb recorded the largest losses among the primary four exchanges, with a net deficit of 205 billion won ($180 million). This figure exceeded the combined losses of both Korbit and Coinone.
It's possible that the $30 million hack cyber breach Bithumb endured further amplified their financial deficit. However, less than two weeks later, they did announce retrieving over half of the compromised cryptocurrencies.
Kimchi Premium proved inadequate in offsetting the 2018 bearish market's effect.
Even amid the 2018 bear market, the Kimchi premium remained a constant throughout much of that year. Domestic traders often paid an extra fee for cryptocurrencies compared to average market prices.
Yet this bonus wasn't enough to shield these three platforms from substantial losses. Across the board, their sales figures saw a dramatic decline in the year's latter half. With dropping revenue and the widespread devaluation of cryptocurrency due to an intensifying bear market, these platforms' operational profits plunged into negative territory.
Stronger government regulations also seemingly impacted the disappointing sales results encountered by these major exchange platforms entities. The legislation banning anonymous cryptocurrency trading likely contributed to fewer account openings at each exchange.
Total losses were extensive for cryptocurrency businesses in 2018.
Bithumb, Korbit, and Coinone weren't isolated in enduring losses from 2018's extended bear market. Mining companies also witnessed contracting revenues, with some even preparing abandoning plans for substantial initial public offerings (IPOs) in Hong Kong.
Bitmain is yet to disclose its earnings statement for the latter half of 2018. However, reports circulate that the company incurred losses devastating losses during Q3 and Q4 of 2018. Bitmain's focus on Bitcoin Cash (BCH) and the ensuing hash war in November 2018 likely exacerbated their revenue decline.
Earlier in the year, Nvidia, a leading player in the computer chip market, announced exiting the cryptocurrency sector. The company aims to clear out its remaining stock following the shrinking demand for mining hardware.
