Exploring Woori Technology’s Potential Sale of Stake in Dunamu
Woori Technology, a prominent South Korean venture capital firm, is currently contemplating the idea of selling its stake in Dunamu, the parent company of the popular Upbit crypto exchange. Upbit stands as the largest crypto trading platform in the East Asian country.
Background Information
Back in 2015, Woori invested 5.5 billion KRW in Dunamu, acquiring an undisclosed share of the company. Fast forward nearly nine years, and the firm now holds a 7.22% stake in Dunamu, with an estimated over-the-counter (OTC) value of around 425.3 billion KRW, equivalent to $300.7 million.
Potential Sale Details
While the exact sale price remains unknown, reports suggest that it could surpass the current OTC market value, potentially resulting in a return exceeding 100 times the initial investment. Speculations hint that Woori is exploring international buyers due to challenges in raising funds from domestic investors. The transaction is expected to take place through a block deal to prevent market manipulation.
Impact on South Korean Crypto Market
Woori’s potential sale coincides with a surge in trading volumes within South Korea’s crypto market, particularly during a period of political unrest in the country.
Recent Events
On December 3, President Yoon Suk Yeol announced emergency martial law, only to retract the decision six hours later. This announcement had a significant impact on the local crypto market, with 18 billion KRW worth of Bitcoin selling occurring within the first thirty minutes, as highlighted by blockchain analytical platform Kaiko.
“While the selling pressure abated for $BTC it remained for other assets, most notably there was significant $XRP selling throughout the day on Bithumb.”
This selling activity led to a surge in trading volumes on local platforms, with Upbit witnessing a 44.7% increase in trading volume, reaching nearly $28 billion in the past 24 hours. Other exchanges like Bithumb, Coinone, Korbit, and Gopax also reported substantial upticks in trading activity.
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