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Coincheck sees massive 66% decline in revenue for its third quarter

The cryptocurrency exchange, Coincheck, has experienced a 66% decline in revenue for its third quarter, despite measures taken by its proprietor, Monex.

The fiscal results for the third quarter were published on the 29th of October by Coincheck’s new operator, Monex Group. These results reveal that in the months of July, August and September- the American third quarter- the Japanese exchange raised around ¥315 million YEN ($2.8 million USD) from its cryptocurrency services. This is a sharp 66% drop from its preceding quarter, which raised around ¥942 million YEN ($8.3 million USD).

Monex Group, Inc. is a financial services company based in Tokyo, Japan. Back in April, Monex acquired Coincheck as a subsidiary and implemented several drastic changes. These included re-hauling the entire management team, enhancing anti-money-laundering (AML) and counter-terrorism financing (CFT) measures, and revising assessment criteria for the risks for each cryptocurrency offering.

All of this was done in response to the infamous Coincheck heist which occurred earlier this year in January. The exchange was plundered of approximately $534 USD worth of NEM coins.

This heist is the main cause for the drop in Coincheck’s performance. Monex has revealed in their publication that since the exchange service was suspended, after the robbery, only existing Coincheck customers were able to sell their cryptocurrencies. This greatly limited in-flowing revenue.

However, despite the drop, Monex remains optimistic. Their report shows that running costs have been brought down 17% from the last quarter. They also state that they are currently providing their service to approximately 1.7 million “mostly young” traders, with claims that this figure will increase in time.

The report also reveals that Coincheck had recorded a write-down of ¥47.2 billion ($432 million) for the fiscal year closing in March as a refund to affected customers, yet still managed to close the year in the green.

As of the time of this writing, Coincheck is seeing around $8.7 million USD in volume being traded daily, according to CoinMarketCap.