Coincheck Reduces Its Losses By Half in Fiscal Year Report

Coincheck Reduces Its Losses By Half in Fiscal Year Report

Coincheck the Japanese exchange that recorded the highest losses in exchange hack in January 2018 has halved its losses in comparison with previous report.

Monex Group, the owners of Coincheck announced this as the company published the reports of its Q3 fiscal year on January 31. Details of the document show that the exchange made losses of 300 million yen ($2.76 million). This halves the losses of the previous quarter losses of 600 million yen ($5.22 million).

Third Quarter Report

Coincheck Reduces Its Losses By Half in Fiscal Year ReportMonex Group which acquired Coincheck in April 2018 after the exchange hack cost it $534 million in NEM (XEM) said that the report covers the third quarter ending March 31 2019.

Coincheck has rebounded after the losses and succeeded in paying back its customers who lost their assets during the hack. The exchange has progressively signed up new users after expanding its services and improving its operations.

Improved Security and Management

The overall managerial and security improvement led to an expansion that has added 1.7 million new users to the Coincheck database. The company reported that of these 900,000 are identifiable clients that downloaded the Coincheck app as at December 2018.

After the January 2018 hack, the Coincheck management released a statement assuring customers that it would refund the lost coins. Although the exchange suspended operation pending investigation, it resumed operations in October and has since seen increase in sign-ups.

Its trading volume has also seen a boost after regulators gave renewed its license after ensuring that its operational protocols comply with laid down rules by the Japanese regulators.

The Coincheck parent company Monex also announced that it is setting up a blockchain lab that would provide enterprise grade solution to businesses.

Profitable Business

The report is not surprising to market analyst who have always maintained that crypto exchanges are among the most profitable investments in cryptosphere.

Although Monex Group acquired Coincheck at a trying period, no one has been left in doubt that it was a good investment for the corporation based on the exchange’s ability to make marked progress despite the hack.

With its enhanced security and management systems, acquiring a new license for Coincheck was not very difficult. Monex has warned that a new scam calling traders to make automated trades does not originate from its exchange.

The company is clearly at alert these days even after its enhanced operational security. It is expected that with its progress that Coincheck would be in profit by the next quarterly report.



Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative reviews.

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