![]() Mobile apps: The platform has developed apps for IOS and Android users. This debit card is financially backed by Visa, and users can make Bitcoin deposits through the use of their smartphone app, through which they can also send funds to merchants that accept Visa. In addition to this, various solutions/services are also available for traders and businesses which are just starting out in the crypto sector.Ĭo-branded debit card: Coincheck users also have the advantage of receiving a co-branded debit card to its clients. Multiple applications: One of Coincheck’s major selling points is its diverse number of applications which can be used by both advanced investors and novice traders alike. Leveraged trading: By using the TradeView platform, Coincheck provides leverage trading, getting its feeds from top cryptocurrency exchanges, which include: Poloniex, Bitfinex, Bitstamp, OKCoin, Coinbase, and Huobi. The Coincheck platform offers the following features: The platform supports the following currencies and cryptocurrencies: JPY, Bitcoin, Ethereum Classic, Bitcoin, Zcash, Augur, Ethereum, Ripple Coin, Factom, Monero, and Lisk. The platform also features the necessary tools for any trading activities. The English language is supported on both platforms. It features an order book and a chat window. The spot trading interface’s design is simple, making it easy to comprehend by users of all levels of experience. The exchange also holds JBA (Japan Blockchain Association) membership, and together with the Japanese Government, all three entities are trying to help promote and develop the Japanese Bitcoin community. Its services are limited to the user’s geographical location, with Japan residents being able to exchange Ethereum, Bitcoin, and fiat currencies, and international users are able to perform Bitcoin transactions and to use their wallet service. DYOR.The company’s founders are Yusuke Otsuka and Koichiro Wada. But we let the markets decide in which way the valuations will converge, if indeed they will. Coincheck’s owner Monex Group comes in at USD 2bn, about 4% of Coinbase’s close on Friday, so with tongue-in-cheek, one might argue that there is a negative valuation attached to the “legacy” businesses of Monex, TradeStation, etc. The punch line, of course, is the comparison of market caps. ![]() That markup also does not seem sustainable as investors become more sophisticated. Elsewhere, Square reported USD 3.51bn in “bitcoin revenue”, which really is the sales value of the bitcoin, and about a 2 percent gross profit, USD 75m. Zero-commission securities trading app Robinhood (those of the GameStop fame) disclosed in a blog post a number of 9.5m active crypto traders on their platform during the first quarter. ![]() To look at some other numbers of interest, which we cannot compare across players, Coinbase stated that a mere 6.1m out of their 56m registered users were active on a monthly basis. As owner Monex stated in the quarterly report: “Especially, trading value of altcoins increased significantly, which led to a 5.5 times increase in revenue.” In other words, less than 15% of Coincheck’s trading value basically generates all revenue. Similar to the way that Coinbase offers a “Pro” version of its platform to experienced traders, with a tiered, more attractive commission structure, Coincheck offers an “Exchange” with limited coin availability, but zero commission/zero spread trading, while the “Marketplace” with 16 coins (the broadest offering in Japan), generates spread income. Is Coincheck punching above its weight or relying upon an unsustainably high commission structure? In Japan, Coincheck claims a 28% market share of verified accounts while competing with 28 other members of the Japan Virtual & Crypto Assets Exchange Association (JVCEA). Regardless, with the numbers available to us, we can determine that Coincheck achieves more than 6% of Coinbase’s first quarter trading volume with a mere 2% of the accounts, and states explicitly that their net income was “close to 10 percent of that” of Coinbase. Alas, as of the close last Friday, Coinbase’s market cap has leveled off some, coming in at around USD 52.5bn. So you can bet that any crypto exchange operator around the globe is doing the comparison. First quarter results are in, and this time we have the benefit of comparing any exchange to the gold standard, with US-based Coinbase choosing the path of a direct listing, and registering an eye-popping market capitalization of close to USD 80bn on the first trading day.
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