Woori Technology, a venture capital firm based in South Korea, is reportedly exploring the possibility of selling its stake in Dunamu, the parent company of the popular Upbit crypto exchange. Upbit is known as the largest cryptocurrency trading platform in the East Asian country.
Reports from local media suggest that Woori initially invested 5.5 billion KRW in Dunamu back in 2015, acquiring an undisclosed portion of the company. Fast forward nearly nine years, and Woori currently holds a 7.22% stake in Dunamu, which is estimated to have an over-the-counter (OTC) value of approximately 425.3 billion KRW, equivalent to around $300.7 million.
Although the exact selling price remains uncertain, speculations indicate that it could potentially exceed the current OTC market value, offering a return that could be more than 100 times the initial investment made by Woori. It is believed that Woori is looking to attract international buyers as it has faced challenges in raising funds from domestic investors. The transaction is expected to take place through a block deal, which allows large shareholders to transfer stocks after hours to prevent any market manipulation.
This potential sale comes at a time when South Korean authorities are investigating the Upbit crypto exchange for various issues, including potential violations of Know-Your-Customer (KYC) regulations and concerns about its dominant position in the local market.
The timing of Woori’s decision to sell its stake in Dunamu is interesting as South Korea’s cryptocurrency market is currently witnessing a surge in trading volumes, coinciding with political turmoil in the country. On December 3, President Yoon Suk Yeol declared a state of emergency martial law, only to reverse the decision six hours later. This sudden announcement had a significant impact on the local crypto market, with reports indicating that there was a substantial amount of selling activity on Bitcoin and other assets on various exchanges.
As a result of this political uncertainty, trading volumes on local platforms like Upbit experienced a notable increase, with a 44.7% rise in trading volume, reaching almost $28 billion in the past 24 hours. Other exchanges such as Bithumb, Coinone, Korbit, and Gopax also reported a significant uptick in trading activity during this period.
In conclusion, Woori Technology’s potential sale of its stake in Dunamu amid the current market conditions and regulatory scrutiny reflects the dynamic nature of the cryptocurrency industry in South Korea. This development will be closely monitored by investors and industry observers to see how it impacts the local crypto ecosystem in the coming days.