According to cryptocurrency exchange Bithumb’s operator, BTCKorea, the exchange had a net loss of 205B won in 2018. The figure is a dramatic decline from its 2017 profits of 427B won.
BTCKorea has just released the revenue for Bithumb. The numbers look abysmal for the cryptocurrency exchange — which was once the largest in South Korea. The decline has been attributed to the plummeting value of its cryptocurrencies held in storage as well as the collapse of its trading volume.
Bithumb’s decline has also been caused by a high-profile cryptocurrency hack it suffered in June of 2018. Hackers made off with customer funds worth over 35B won from the exchange.
Earlier this year, Bithumb operator BTCKorea laid off 30 out of its 340 employees — due to declining revenues and trading volume.
Bithumb’s Bad Week (Or Year)
All of this news comes at a time when Bithumb is currently amid another hack. Last week, the exchange was hacked to a tune of around $20M. The exchange has requested that traders cease to make deposits until the situation is clarified.
However, unlike the hack which occurred in June of 2018, no customer funds were lost. Instead, ex-employees managed to empty cold wallets stored by the exchange itself — which it saved as capital. The hack has been called an “inside job,” likely from disgruntled employees who were laid off in the last few months.
Bithumb And The Battle Ahead
The future for Bithumb seems uncertain at this point.
The laying off of workers and the most-recent hack indicate that the exchange is on its last legs.
Although trading volume on the exchange remains high — over $600M at the time of writing — there is skepticism over whether or not the exchange can remain solvent by the end of this year.
The lack of trust also inevitably will push away many Korean users who now have many more trading options to chose from.
Will Bithumb survive in the long run? Are its prospects looking dim? Let us know your thoughts below.