Coincheck’s net profit falls 95pc y-o-y for April-June period

Japanese cryptocurrency exchange Coincheck’s net profit fell 95.4 per cent year-on-year to 415 million yen (approximately US$3.09 million) for the three months ending June.

Operating revenues were 3.19 billion yen, down 75 per cent from 12.74 billion yen in the same period last year, Coincheck said on August 3. Acceptance fees dropped 45.3 per cent to 257 million yen due to a decrease in remittance fees. 

Trading profits fell 80.7 per cent to 2,343 million yen due to a decrease in Bitcoin and Altcoin transactions.

The crypto market has suffered a slump in the first half of the year amid global inflation and global inflation and accelerated monetary tightening in many countries triggered by Russia’s invasion of Ukraine and China’s “zero Covid policy.” As business conditions worsen, some excessively leveraged companies have been liquidated.

Adding to their woes were frequent phishing scams and other scams targeting popular NFT collections.

Coincheck operates the NFT marketplace Coincheck NFT (beta version) and partners with NFT games including The Sandbox and  the VR platform Decentraland. Coincheck has also purchased “Otherdeed” NFTs, virtual plots of land on “Otherside,” a new metaverse project developed by Yuga Labs, the company behind the NFT collection “Bored Ape Yacht Club.” In March, it announced its plan to list on the U.S. NASDAQ by the end of 2022.

Coincheck was founded in 2012 and entered the crypto asset exchange business in 2014.  In January 2018, it was found to have leaked approximately 58 billion yen worth of crypto assets and was ordered by the Financial Services Agency to improve operations. In April the same year, it became part of the Monex Group. It has more than 1.5 million accounts, accounting for nearly 30 per cent of Japan’s market, with assets under custody amounting to US$ 3.8 billion.