Winners and wipeouts: South Korea’s crypto exchanges are splitting into two

Key Takeaways

South Korea’s crypto exchange market is rupturing, with giants like Upbit and Bithumb soaring amid IPO plans, while Coinone struggles to survive.

South Korea’s crypto exchange landscape is revealing a tale of two markets, one marked by soaring valuations and the other by strategic retreats.

Korea’s crypto exchange split

As investor optimism fuels a bullish crypto cycle, giants like Dunamu and Bithumb are witnessing explosive gains in their share prices, while smaller rival Coinone has opted to exit its crypto holdings entirely.

The contrasting moves signal a growing divide in the industry, where market leaders thrive and others struggle to keep pace. 

That being said, the surge in valuations for Dunamu and Bithumb comes amid a broader resurgence in investor interest across the crypto sector.

Both exchanges have already hit their peak private share prices on 4th July, with Dunamu reaching 258,000 won and Bithumb climbing to 275,000 won, buoyed by Bitcoin’s repeated pushes to new yearly highs.

Although their valuations have moderated slightly since, the momentum underscores the strong confidence investors have in their market leadership.

In fact, both companies are reportedly gearing up for public offerings.

Bithumb, in particular, has set its sights on a Kosdaq listing targeted for late 2025.

Analysts suggest the exchange’s recent performance and consistent trading volumes provide a strong foundation for this ambitious move.

Meanwhile, Dunamu’s continued dominance through its flagship exchange Upbit also bolsters speculation around a potential IPO.

Coinone defies the trend

In stark contrast, smaller rival Coinone is facing considerable financial pressure.

Holding just 3% of the local crypto exchange market, Coinone has opted to sell off $2.96 million worth of its digital assets, which is about 10% of its total crypto holdings.

The decision is notable as the first such action under South Korea’s updated regulatory framework, introduced in May 2025.

For those unaware, under the new rules, exchanges can now liquidate portions of their crypto holdings to fund operations, provided the sales are pre-disclosed and limited to top-20 cryptocurrencies by market capitalization.

Coinone’s move aligns with these requirements, though the rationale behind the sale reveals deeper challenges.

The company has indicated the funds will go toward meeting operational expenses, including staff salaries, rather than expansion or infrastructure, signaling a shortfall in liquidity.

This divergence in strategy between leading and trailing exchanges paints a clear picture of the shifting dynamics in South Korea’s crypto ecosystem.

What’s more?

All in all, Coinone’s retreat highlights the mounting difficulties faced by smaller players trying to stay afloat in an increasingly competitive and regulated environment.

With Upbit and Bithumb commanding a combined 96% market share, survival for other players hinges on strategic pivots or potential acquisitions.

This further coincided with South Korea pushing ahead with robust regulatory reforms and banks ramping up stablecoin initiatives, tilting toward institutional alignment and scale-driven competitiveness.

In this environment, exchanges that can’t adapt or expand may soon find themselves edged out of the game entirely.