Woori Technology, a South Korean venture capital firm, is reportedly considering selling its stake in Dunamu, the company's parent company. Upbit Crypto exchange
Upbit is the largest cryptocurrency trading platform in East Asia.
According to local media reportsWoori invested KRW 5.5 billion in Dunamu in 2015 and acquired an undisclosed stake in the company. Almost nine years later, the company owns a 7.22 percent stake, which is reportedly currently worth around KRW 425.3 billion, or $300.7 million, over the counter (OTC).
While the exact sale price remains unclear, reports suggest that it could exceed the current OTC market value, with returns potentially exceeding 100 times the initial investment.
Speculations suggest that Woori is looking for international buyers after trying to raise capital from domestic investors. The deal is likely to be done through a block deal, allowing large shareholders to transfer shares after hours, preventing market manipulation.
Meanwhile, the deal comes at an interesting time as South Korean authorities are scrutinizing the crypto trading platform for multiple issues, including potential Know Your Customer (KYC) violations. And worry about it Dominate the local market.
Tear volume
Woori's potential sale comes as South Korea's crypto market has seen a surge in trading volume, coinciding with political unrest in the country.
On December 3, President Yoon Suk-yeol declared emergency martial law but reversed his decision six hours later.
The announcement significantly affected the local crypto market, with blockchain analytics platform Kaiko noting that the president's move led to KRW 18 billion worth of Bitcoin being sold in the first 30 minutes. it has been added:
“While selling pressure eased for Bitcoin Dollar, it remained for other assets, notably as there was significant selling of XRP Dollar throughout the day on Bithumb.”
It is not surprising that extensive sales activities have turned into heavy commercial activities on local platforms in the country. Onchain data shows that Upbit saw a 44.7% increase in transaction volume, reaching nearly $28 billion in the past 24 hours. Other exchanges including the frogCoinone, Korbit and Gopax also reported a significant increase in trading activity.
