Exclusive | Deep Dive into Upbit's US IPO: Korea's Largest Crypto Exchange Platform is More Profitable than Coinbase, but its Valuation is Only 1/7

BlockBeatsNov 28, 2025
#Layer1
Original Title: Exclusive | In-depth Analysis of Upbit's US IPO: South Korea's Largest Cryptocurrency Exchange More Profitable Than Coinbase, Yet Valuation Only 1/7th On November 27, 2025, a "minor earthquake" struck the South Korean cryptocurrency world. Upbit, the absolute market leader in South Korea, suffered a hacker attack, with 54 billion won (approximately US$36 million) disappearing. Upbit later revised its statement, claiming 44.5 billion won was lost from its Solana network assets. However, the market's panic was quickly digested. Based on Upbit's quarterly net profit of approximately US$200 million, Upbit could recoup the stolen amount in just two weeks. Just three days before the theft, Upbit's parent company, Dunamu, announced a "merger of the century" with South Korean internet giant Naver Financial, preparing for a US IPO with a current valuation of US$10.3 billion. Behind this merger are not only old and new South Korean chaebols, but also a South Korean super financial group listed on the US stock market. In this world, many seemingly isolated "black swan" events, if viewed in context, are often just a speck of dust falling from a giant "gray rhino." Theft and Merger: First, we must define the nature of the "theft." $36 million is a large sum. But when it comes to trading platforms, we must learn to do the math. According to Upbit's parent company, Dunamu, at its annual shareholders' meeting, its 2024 financial report showed an operating profit of 1.18 trillion won (approximately $800-900 million) and a net profit of 983.8 billion won (approximately $700 million), representing a year-on-year increase of 22.2%. Clearly, the amount stolen is merely a mosquito bite on its massive balance sheet. Currently, the South Korean Financial Services Agency has preliminarily identified the North Korean "Lazarus" organization as the mastermind. Official assessments suggest this attack replicated a "privilege hijacking" tactic from six years ago, with hackers suspected of stealing or impersonating administrator accounts to transfer funds, rather than directly infiltrating servers. Currently, South Korean regulatory authorities have urgently dispatched personnel to Upbit's headquarters for an on-site investigation. However, this seemingly minor incident has exposed a deeper problem: Upbit is simply too large. Large enough that its cash flow is enough to make hackers envious, large enough that its very existence is enough to make regulators wary. This is why the "merger of the century" three days ago was so crucial. If the theft demonstrated Upbit's financial strength, then the merger exposed its anxiety and ambition. According to public information, Naver Financial (Naver's financial arm) will conduct a full equity swap with Dunamu (Upbit's parent company). Here's a counterintuitive data comparison.In terms of operating profit, Upbit earned 1.18 trillion won, while Naver Financial earned only 103.5 billion won. This means Upbit earned ten times more than Naver. With such a huge profit disparity, why merge? Logically, this should be a "downward attack" or "acquisition" of Naver Financial by Upbit. However, in the world of capital, the logic is never that whoever has more money is the boss. Therefore, this merger is more of a collaboration between South Korean political interest groups. Upbit is offering its allegiance to the "new political forces" behind Naver, representing the internet and emerging industries, in exchange for Naver's powerful political protection. Only through this structural reorganization, using Naver's shell or endorsement, can it bypass South Korean regulations and directly access the US Nasdaq. For more details regarding Upbit's listing, we conducted an exclusive interview with Jason Huang, founder of NDV USD Fund, an investor with long-term, in-depth research and understanding of the South Korean cryptocurrency trading ecosystem. NDV is a compliant hedge fund focused on "digital asset stocks + derivatives," renowned for its stringent risk control measures including independent custody and auditing. In terms of past performance, NDV's first fund, Fund I, achieved remarkable results, securing a liquidation return of 275.5% within two years. Below is our interview. Interview with Upbit IPO Watch: What does Upbit expect to list in the US? Jason: The merger between Upbit's parent company, Dunamu, and Naver Financial is likely the largest merger in Crypto history. Following the merger, the typical preparation cycle for US IPOs is expected to take 8-9 months. Ideally, if all goes smoothly, the IPO application should be submitted in the second half of 2026. From what I understand, the world's largest and top investment banks are vying to be their underwriters, and it's one of the most profitable projects. For example, Kraken only turned a profit in the third quarter of this year, yet its valuation has already reached $20 billion. IPO Watch: What is the status of Upbit's compliance and IPO preparations? Jason: Upbit is a very mature and transparent company, essentially a "pre-IPO" company. It's currently audited by PwC Korea and is one of only five compliant trading platforms in Korea. Therefore, its compliance level is comparable to Coinbase's in its early days. The company has no preferred stock, only common stock, and its information disclosure is transparent. The IPO preparations are basically complete; after the merger, it's just waiting for regulatory approval. Dongcha: Upbit is currently valued at $10.3 billion. What do you think of this valuation? Jason: This is a project that is clearly undervalued in the primary market.Compared to Coinbase, a US-based trading platform with a current market capitalization of approximately $70 billion and a price-to-earnings ratio (P/E) of around 30-40, while Robinhood's P/E even reaches 60-70, Upbit's valuation in the primary market is only around $10 billion. Even considering the "Korea Discount," Upbit remains a very attractive undervalued asset. Top investment bankers believe this represents a multi-billion dollar opportunity. The so-called "Korea Discount" has long existed in the South Korean stock market, meaning that due to geopolitical risks and the governance structures of conglomerates, South Korean companies are generally valued lower than their global counterparts. However, if Upbit were merely a profitable trading platform, its story's ceiling would be that of the next Coinbase. But what's truly valuable is its recently completed merger. Upbit's parent company, Dunamu, swapped shares with Naver Financial at a ratio of approximately 1:2.5. In terms of market capitalization: Dunamu holds 3, and Naver Financial holds 1. After the merger, the CEO of Upbit's parent company remains the largest single shareholder. Dongcha: What does this merger with Naver Financial mean? Jason: Let's use an analogy. What is Naver? It's the Korean equivalent of Google plus Amazon. What is Naver Financial? It's the Korean equivalent of Alipay or Google Pay. So this merger will create an unprecedented financial giant. We can think of it as a trinity of "Coinbase (trading) + Google Pay (payment) + Circle (stablecoin)". Dongcha: Why mention Circle? Because the new South Korean government is vigorously promoting the Korean won stablecoin. Considering Circle's business model of paying huge sums to Coinbase annually as "protection fees," this process inevitably involves Upbit. Currently, no company in the market can simultaneously possess both a "traditional payment license" and a "crypto trading license," and both are national-level applications. The valuation logic of this closed-loop ecosystem is no longer a simple PE ratio, but the multiplier effect of the platform economy—it's a good business. If Coinbase is a "trading platform + stablecoin partnership," and Robinhood is a "brokerage firm + crypto gateway," then if Upbit completes its merger and issues a Korean won stablecoin, it will resemble a closed loop of "payment infrastructure + trading platform + native stablecoin." This is why current investors believe its $10.3 billion valuation is "pickup money." Interviewer: You mentioned Coinbase earlier. Are Upbit's operating costs lower than Coinbase's? Jason: Yes, Upbit's operating costs are only one-tenth of Coinbase's. Interviewer: Why such a large cost difference?Jason: Coinbase operates in the US to compete globally with Robinhood, Binance, and Kraken. This incurs high US manpower and compliance costs, and the company continues to burn cash in this competitive environment. Upbit, on the other hand, operates in the South Korean market, where competition is largely eliminated. As the world's second-largest spot trading platform after Binance, Upbit enjoys an absolute monopoly. In economics, this is called "excess rent from a natural monopoly," where almost every additional revenue is directly converted into net profit. This creates a huge "scissors gap": a giant with a profit margin far exceeding Coinbase's and a monopolistic position is valued at only one-seventh of Coinbase's. Therefore, for capital, this obvious value mismatch is an attractive target. They are betting on one thing: filling this huge valuation gap by listing in the US. Coinbase, operating in the US global market, faces continuous competition from rivals like Kraken and Robinhood, while the South Korean market is largely competitive, with Upbit holding a monopoly, allowing every additional revenue to be converted into profit more efficiently. Interviewer: If Upbit's valuation is so undervalued, why would anyone want to sell their primary stake? Jason: Koreans believe the entire IPO cycle is uncontrollable, and some are worried about the IPO delay, potentially coinciding with a bear market. Some want to cash out now. Personally, I think even in a bear market, a valuation of $10.3 billion still offers excellent value. Interviewer: Many media outlets reported that Masayoshi Son was involved in this acquisition? Jason: That's inaccurate. Son only holds shares in Naver's parent company; he wasn't involved in the merger of its subsidiary, Naver Financial. It's like the recent reports of Jack Ma buying Ethereum; he was just a shareholder, and he probably didn't even know he bought Ethereum. Similarly, Son himself probably doesn't know he orchestrated Korea's largest acquisition, haha. Interviewer: Finally, let's talk about your views on the crypto market. What are your thoughts on the macroeconomic environment next year? Jason: We are optimistic about next year. In an interview a few months ago, we predicted a 30%-50% correction within six months. That correction has largely materialized; retail investors who needed to exit have already done so, and leverage has been largely cleared. As long as the US maintains a rate-cutting environment next year, risk assets are unlikely to decline, and the market will likely perform well. Returning to the beginning...While ordinary retail investors were lamenting Upbit's $35 million loss, true investors were calculating stock-for-stock ratios and planning the Nasdaq bell-ringing ceremony. This was a power transition in South Korean business history. The merger with Naver is a manifestation of this upgraded governance structure. Upbit is shedding its early, unregulated growth patterns. The future Upbit will no longer be just a cryptocurrency trading platform, but a comprehensive fintech group integrating payments, trading, and stablecoins. This isn't a power game of who controls whom, but a strategic choice to adapt to the global trend of crypto regulation. Upbit is becoming a typical example in the non-US crypto industry: cryptocurrency trading platforms from all countries are converging on the same path, moving from the gray area towards the beginning of political cooperation. Original link: https://mp.weixin.qq.com/s/4a4SPGJdVuDcUD9-GBoDSA [Beating]
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Exclusive | Deep Dive into Upbit's US IPO: Korea's Largest Crypto Exchange Platform is More Profitable than Coinbase, but its Valuation is Only 1/7

BlockBeatsNov 28, 2025
#Layer1
Original Title: Exclusive | In-depth Analysis of Upbit's US IPO: South Korea's Largest Cryptocurrency Exchange More Profitable Than Coinbase, Yet Valuation Only 1/7th On November 27, 2025, a "minor earthquake" struck the South Korean cryptocurrency world. Upbit, the absolute market leader in South Korea, suffered a hacker attack, with 54 billion won (approximately US$36 million) disappearing. Upbit later revised its statement, claiming 44.5 billion won was lost from its Solana network assets. However, the market's panic was quickly digested. Based on Upbit's quarterly net profit of approximately US$200 million, Upbit could recoup the stolen amount in just two weeks. Just three days before the theft, Upbit's parent company, Dunamu, announced a "merger of the century" with South Korean internet giant Naver Financial, preparing for a US IPO with a current valuation of US$10.3 billion. Behind this merger are not only old and new South Korean chaebols, but also a South Korean super financial group listed on the US stock market. In this world, many seemingly isolated "black swan" events, if viewed in context, are often just a speck of dust falling from a giant "gray rhino." Theft and Merger: First, we must define the nature of the "theft." $36 million is a large sum. But when it comes to trading platforms, we must learn to do the math. According to Upbit's parent company, Dunamu, at its annual shareholders' meeting, its 2024 financial report showed an operating profit of 1.18 trillion won (approximately $800-900 million) and a net profit of 983.8 billion won (approximately $700 million), representing a year-on-year increase of 22.2%. Clearly, the amount stolen is merely a mosquito bite on its massive balance sheet. Currently, the South Korean Financial Services Agency has preliminarily identified the North Korean "Lazarus" organization as the mastermind. Official assessments suggest this attack replicated a "privilege hijacking" tactic from six years ago, with hackers suspected of stealing or impersonating administrator accounts to transfer funds, rather than directly infiltrating servers. Currently, South Korean regulatory authorities have urgently dispatched personnel to Upbit's headquarters for an on-site investigation. However, this seemingly minor incident has exposed a deeper problem: Upbit is simply too large. Large enough that its cash flow is enough to make hackers envious, large enough that its very existence is enough to make regulators wary. This is why the "merger of the century" three days ago was so crucial. If the theft demonstrated Upbit's financial strength, then the merger exposed its anxiety and ambition. According to public information, Naver Financial (Naver's financial arm) will conduct a full equity swap with Dunamu (Upbit's parent company). Here's a counterintuitive data comparison.In terms of operating profit, Upbit earned 1.18 trillion won, while Naver Financial earned only 103.5 billion won. This means Upbit earned ten times more than Naver. With such a huge profit disparity, why merge? Logically, this should be a "downward attack" or "acquisition" of Naver Financial by Upbit. However, in the world of capital, the logic is never that whoever has more money is the boss. Therefore, this merger is more of a collaboration between South Korean political interest groups. Upbit is offering its allegiance to the "new political forces" behind Naver, representing the internet and emerging industries, in exchange for Naver's powerful political protection. Only through this structural reorganization, using Naver's shell or endorsement, can it bypass South Korean regulations and directly access the US Nasdaq. For more details regarding Upbit's listing, we conducted an exclusive interview with Jason Huang, founder of NDV USD Fund, an investor with long-term, in-depth research and understanding of the South Korean cryptocurrency trading ecosystem. NDV is a compliant hedge fund focused on "digital asset stocks + derivatives," renowned for its stringent risk control measures including independent custody and auditing. In terms of past performance, NDV's first fund, Fund I, achieved remarkable results, securing a liquidation return of 275.5% within two years. Below is our interview. Interview with Upbit IPO Watch: What does Upbit expect to list in the US? Jason: The merger between Upbit's parent company, Dunamu, and Naver Financial is likely the largest merger in Crypto history. Following the merger, the typical preparation cycle for US IPOs is expected to take 8-9 months. Ideally, if all goes smoothly, the IPO application should be submitted in the second half of 2026. From what I understand, the world's largest and top investment banks are vying to be their underwriters, and it's one of the most profitable projects. For example, Kraken only turned a profit in the third quarter of this year, yet its valuation has already reached $20 billion. IPO Watch: What is the status of Upbit's compliance and IPO preparations? Jason: Upbit is a very mature and transparent company, essentially a "pre-IPO" company. It's currently audited by PwC Korea and is one of only five compliant trading platforms in Korea. Therefore, its compliance level is comparable to Coinbase's in its early days. The company has no preferred stock, only common stock, and its information disclosure is transparent. The IPO preparations are basically complete; after the merger, it's just waiting for regulatory approval. Dongcha: Upbit is currently valued at $10.3 billion. What do you think of this valuation? Jason: This is a project that is clearly undervalued in the primary market.Compared to Coinbase, a US-based trading platform with a current market capitalization of approximately $70 billion and a price-to-earnings ratio (P/E) of around 30-40, while Robinhood's P/E even reaches 60-70, Upbit's valuation in the primary market is only around $10 billion. Even considering the "Korea Discount," Upbit remains a very attractive undervalued asset. Top investment bankers believe this represents a multi-billion dollar opportunity. The so-called "Korea Discount" has long existed in the South Korean stock market, meaning that due to geopolitical risks and the governance structures of conglomerates, South Korean companies are generally valued lower than their global counterparts. However, if Upbit were merely a profitable trading platform, its story's ceiling would be that of the next Coinbase. But what's truly valuable is its recently completed merger. Upbit's parent company, Dunamu, swapped shares with Naver Financial at a ratio of approximately 1:2.5. In terms of market capitalization: Dunamu holds 3, and Naver Financial holds 1. After the merger, the CEO of Upbit's parent company remains the largest single shareholder. Dongcha: What does this merger with Naver Financial mean? Jason: Let's use an analogy. What is Naver? It's the Korean equivalent of Google plus Amazon. What is Naver Financial? It's the Korean equivalent of Alipay or Google Pay. So this merger will create an unprecedented financial giant. We can think of it as a trinity of "Coinbase (trading) + Google Pay (payment) + Circle (stablecoin)". Dongcha: Why mention Circle? Because the new South Korean government is vigorously promoting the Korean won stablecoin. Considering Circle's business model of paying huge sums to Coinbase annually as "protection fees," this process inevitably involves Upbit. Currently, no company in the market can simultaneously possess both a "traditional payment license" and a "crypto trading license," and both are national-level applications. The valuation logic of this closed-loop ecosystem is no longer a simple PE ratio, but the multiplier effect of the platform economy—it's a good business. If Coinbase is a "trading platform + stablecoin partnership," and Robinhood is a "brokerage firm + crypto gateway," then if Upbit completes its merger and issues a Korean won stablecoin, it will resemble a closed loop of "payment infrastructure + trading platform + native stablecoin." This is why current investors believe its $10.3 billion valuation is "pickup money." Interviewer: You mentioned Coinbase earlier. Are Upbit's operating costs lower than Coinbase's? Jason: Yes, Upbit's operating costs are only one-tenth of Coinbase's. Interviewer: Why such a large cost difference?Jason: Coinbase operates in the US to compete globally with Robinhood, Binance, and Kraken. This incurs high US manpower and compliance costs, and the company continues to burn cash in this competitive environment. Upbit, on the other hand, operates in the South Korean market, where competition is largely eliminated. As the world's second-largest spot trading platform after Binance, Upbit enjoys an absolute monopoly. In economics, this is called "excess rent from a natural monopoly," where almost every additional revenue is directly converted into net profit. This creates a huge "scissors gap": a giant with a profit margin far exceeding Coinbase's and a monopolistic position is valued at only one-seventh of Coinbase's. Therefore, for capital, this obvious value mismatch is an attractive target. They are betting on one thing: filling this huge valuation gap by listing in the US. Coinbase, operating in the US global market, faces continuous competition from rivals like Kraken and Robinhood, while the South Korean market is largely competitive, with Upbit holding a monopoly, allowing every additional revenue to be converted into profit more efficiently. Interviewer: If Upbit's valuation is so undervalued, why would anyone want to sell their primary stake? Jason: Koreans believe the entire IPO cycle is uncontrollable, and some are worried about the IPO delay, potentially coinciding with a bear market. Some want to cash out now. Personally, I think even in a bear market, a valuation of $10.3 billion still offers excellent value. Interviewer: Many media outlets reported that Masayoshi Son was involved in this acquisition? Jason: That's inaccurate. Son only holds shares in Naver's parent company; he wasn't involved in the merger of its subsidiary, Naver Financial. It's like the recent reports of Jack Ma buying Ethereum; he was just a shareholder, and he probably didn't even know he bought Ethereum. Similarly, Son himself probably doesn't know he orchestrated Korea's largest acquisition, haha. Interviewer: Finally, let's talk about your views on the crypto market. What are your thoughts on the macroeconomic environment next year? Jason: We are optimistic about next year. In an interview a few months ago, we predicted a 30%-50% correction within six months. That correction has largely materialized; retail investors who needed to exit have already done so, and leverage has been largely cleared. As long as the US maintains a rate-cutting environment next year, risk assets are unlikely to decline, and the market will likely perform well. Returning to the beginning...While ordinary retail investors were lamenting Upbit's $35 million loss, true investors were calculating stock-for-stock ratios and planning the Nasdaq bell-ringing ceremony. This was a power transition in South Korean business history. The merger with Naver is a manifestation of this upgraded governance structure. Upbit is shedding its early, unregulated growth patterns. The future Upbit will no longer be just a cryptocurrency trading platform, but a comprehensive fintech group integrating payments, trading, and stablecoins. This isn't a power game of who controls whom, but a strategic choice to adapt to the global trend of crypto regulation. Upbit is becoming a typical example in the non-US crypto industry: cryptocurrency trading platforms from all countries are converging on the same path, moving from the gray area towards the beginning of political cooperation. Original link: https://mp.weixin.qq.com/s/4a4SPGJdVuDcUD9-GBoDSA [Beating]
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