Coincheck Reports Over 1.7 Million New Users Since Resuming Operations

Girish Chugh

February 2, 2019 12:27 pm

Crypto News

Coincheck Reports Over 1.7 Million New Users Since Resuming Operations
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Trading Volume Increases as New Users Register

In January 2018, Coincheck faced problems as about $534 million worth of the NEM cryptocurrency was stolen, resulting in a complete shutdown of operations. The financial damage was never recovered, however, the trading platform has been putting efforts to revamp its services ever since.

In an attempt to rebuild the whole platform, Coincheck has undertaken extensive measures, including the improvement of security protocols and regularization of its operations with Japan’s financial regulator. Coincheck’s registration as a crypto exchange was completed on January 11, 2019.

The third quarter to March 31, 2019 earnings report published by Monex Group, the Japanese Owners of Coincheck, indicated an increase in the trading volume since the purchasing and depositing services resumed “for all tradable cryptocurrencies” at the end of the November.

In the financial report released on January 31, Monex said, “Service resumption contributed to an increase in trading volume (and) growth potential in customer base where the millennials are the majority.”

Coincheck Bears Losses

The trading platform also reported losses of about $2.97 million the previous quarter, as the new customer signups spiked. The revenue inrush followed at $4.59 million, above $2.75 million in the second quarter.
According to Monex, the company had established its “Blockchain Lab (BCLab),” which is built to provide solutions related to blockchain and cryptocurrency technology to various companies.

The group also mentioned the importance of the virtual currency business to its whole operation, stating: “Cryptocurrency trading business will be a key to enhancing cross-segment interaction” which will grow “business capability and create new customers.”

Coincheck, acquired by Monex for $34 million last April, has been granted an operating license by the Japanese Financial Services Authority. The permit allows the crypto trading platform to continue its services within the Pacific island nation. Security and management systems have also been updated to prevent another case of hacking.

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