Upbit, South Korea’s leading cryptocurrency exchange, has experienced a significant boost following Donald Trump’s recent election as U.S. president.
In less than two weeks since the election, Upbit’s operator, Dunamu, has reportedly generated over 100 billion won ($718 million) in transaction fees, leading to a surge in its stock price. Investor interest in Dunamu’s shares has also markedly increased.
As of 9:32 a.m. on Nov. 19, Dunamu’s shares were trading at $95 on the unlisted stock trading platform, Securities Plus Unlisted. This represents a 27% increase from the $75 recorded on Nov. 5, prior to the U.S. election. On Nov. 14, the stock reached $103, the highest since March, before slightly declining due to profit-taking. Despite this, the stock remains approximately 30% higher than its pre-election level.
Analysts attribute Dunamu’s stock rise to expectations of strong fourth-quarter performance from Upbit. Dunamu derives 97% of its revenue from transaction fees, with Upbit contributing the majority.
The so-called “Trump Trade” has fueled optimism about Upbit’s growth. During his campaign, President-elect Trump advocated for pro-cryptocurrency policies, including promoting Bitcoin mining and pledging to ease regulations on digital assets. He also suggested that the United States should consider holding Bitcoin as part of a strategic reserve.
With Trump’s pro-crypto stance, his election victory triggered a surge in cryptocurrency prices. Bitcoin’s price surpassed $90,000, hitting an all-time high, which drove up trading volumes on Upbit and significantly boosted its transaction fee revenue. Industry sources estimate that Upbit generated approximately more than $700 million in fees within a week of Trump’s election being confirmed.
According to cryptocurrency data provider CoinGecko, from Nov. 6 to 9:40 a.m. on Nov. 19, Upbit’s total transaction volume was about $111.3 billion. Based on Upbit’s standard transaction fee of 0.05%, this equates to approximately $113 million in fees. This means that in just two weeks, Dunamu earned approximately 80% of its third-quarter revenue of $136.1 million.
Since both buyers and sellers are charged fees, the total revenue is effectively doubled. Additionally, reserved orders incur a fee of 0.139%, more than double the standard rate, and the platform also collects deposit and withdrawal fees. For instance, Upbit currently charges $0.72 per withdrawal in S. Korean won, indicating that actual profits could be even higher.
In the third quarter, Dunamu’s performance was subdued due to the “crypto winter,” but Upbit’s strong fourth-quarter outlook has attracted investors. On Nov. 5, the trading volume was 1,783 shares, but it surged to 21,760 shares on Nov. 12, a 12.2-fold increase following Trump’s election confirmation. Although the volume decreased to 6,356 shares by Nov. 18, it remains nearly four times higher than before the election.
Dunamu’s assets are also expected to grow. As of the third quarter, the company held 16,748 Bitcoins. At a price of $90,000 per Bitcoin, this amounts to approximately $1.4 billion. Considering that Bitcoin was priced around $45,000 at the beginning of the year, the value of these holdings has roughly doubled.
