TechFlow news — South Korean cryptocurrency exchange Upbit has today released an announcement clarifying its parent company Dunamu’s venture investment subsidiary, Dunamu & Partners, and its investment in Luna. As a subsidiary of Dunamu, Dunamu & Partners only periodically or irregularly reports its investments to shareholders. While Dunamu, the operator of Upbit, was aware of Dunamu & Partners’ investment in Luna, it did not participate in the investment decision-making process.
Dunamu & Partners acquired 20 million Luna tokens on April 20, 2018. Upbit began supporting Luna trading starting July 26, 2019. However, since Dunamu does not support Luna in the Korean won market, Dunamu & Partners could not liquidate its Luna holdings into Korean won via Upbit. On February 19, 2021, Dunamu & Partners exchanged 20 million Luna tokens for 2,081.85 BTC. At that time, the price of Luna was 0.00013879 BTC (approximately USD 7.12), but Dunamu & Partners executed the trade at 0.0001040925 BTC (around USD 5.34), about 25% lower than the market price. The 2,081.85 BTC held by Dunamu & Partners was worth approximately KRW 132.5 billion (USD 107 million) at acquisition. However, as of May 29, 2022, its value had dropped to about KRW 77.82 billion (USD 62.75 million).
Recent claims that Dunamu & Partners realized KRW 130 billion (approximately USD 105 million) in profits from its Luna investment are false. Dunamu & Partners continues to hold the Bitcoin obtained from the Luna exchange and has never realized any profit from this position. After deducting taxes paid and initial investment costs, the current unrealized gain is approximately USD 33.06 million.
