Decenter reports that Bithumb Korea, the organisation that runs the virtual asset exchange Bithumb, suffered a large operational deficit in the second quarter of 2023. Bithumb Korea reported an operational loss of KRW 3.442 billion for the second quarter, according to the electronic disclosure system run by the Financial Supervisory Service on August 16. This stands in stark contrast to the profit of KRW 38.42 billion that was recorded during the same time period the previous year.
The company’s overall earnings decreased as well, falling by 60% annually to KRW 31.993 billion. The net loss for the period was KRW 8.583 billion, a significant decrease from the loss of KRW 43.3 billion that happened the previous year.
According to analysts, the downturn in virtual asset trading volume, which resulted in a drop in fee-based revenue, is to blame for Bithumb’s failing performance. Prices for virtual assets showed a rising trend in the first quarter, but by the second quarter, prices had remained below the $30,000 level, which had a depressing effect on investor sentiment. While there were small recoveries following good news, such as large US asset managers requesting listings for Bitcoin (BTC) ETFs and Ripple (XRP) winning court battles, these did not result in long-term gains.
Bithumb has started a no-fee event for a few specific virtual assets in an effort to increase activity in response to the dropping trading volumes. Transactions involving 30 other virtual assets, including Solana (SOL), Ethereum Classic (ETC), and Sandbox (SAND), are currently free of charge on the exchange. According to Bithumb, “The objective is to lessen the entry barrier for investors and attract new inflows to ensure liquidity. We’re starting with a no-fee zone event and hope to offer more proactive and varied services in the future.
A notable virtual asset exchange on the international scene is Bithumb Korea, which was founded in 2014. Bithumb is positioned to influence the future of digital financing platforms around the world because to its extensive knowledge in virtual asset trading and blockchain technology.