South Korean fintech Dunamu invests $46 million in blockchain startups

Dunamu revealed on May 15 that the company has invested $46 million in 26 different blockchain startup companies over the past year. The majority of the 55 million won provided to the blockchain startups would come from its leading subsidiary, Dunamu & Partners.

Dunamu & Partners was first established in March 2018 as part of an overall strategy intended to give the company a stronger presence within the cryptocurrency markets, especially within South Korea. That same month, they established the first cryptocurrency index in South Korea, which was launched in October of last year.

While many of the cryptocurrency exchanges suffered a significant loss in 2018, that was not the case for Dunamu, which saw a net profit of $126.03 million. A pretty substantial amount of money for a company that had only been in business for nine months.

What makes the net profit even more extraordinary is the fact that, while the company was reaping in profits, they were investing the $46 million across a wide range of startup companies dedicated to blockchain technology. Yet, the company still plans to invest another $38 million over the next two years according to Ryan Lee, CEO of Dunamu & Partners. He said:

“Our goal is to contribute to the healthy growth of the blockchain ecosystem by actively investing in startups with world-class technology and services with potential for real-life implementation.”

The purpose of the investment has been focused on certain aspects of the blockchain companies, primarily looking at developing core blockchain technology and services, as well as examining blockchain application potential as this technology continues to emerge.

As part of this investment strategy, the company focused on three micro trends that they believe will be the most significant in terms of growth. This includes the adaptation of blockchain based services for mainstream application, developing mobile fintech services to function in continuing financial regulations, as well as building a brand that provides opportunities for those creating blockchain solutions. While other types of trends will be looked at, these are the three primary areas they believe need the largest amount of investment because of their importance within the emerging technology.

One such example of their investment included Band Protocol. This company has been looking to incentivize reliable content producers by rewarding and providing tokens that can be used by those firms.