The uncertain future of Coincheck is a mirrored concern shared by numerous other platforms and enterprises linked to cryptocurrency. The inherent volatility of the cryptocurrency market stems from its embryonic stage, with the potential for non-fungible tokens and other blockchain-based assets to either retain or lose value over time. In light of this, Coincheck seems to be actively pursuing relevance within this nascent industry.
By publicly listing on an American exchange and venturing into the metaverse domain, Coincheck is indicating its intention to broaden its range of offerings to adapt to market trends and future advancements. With tech behemoths like Microsoft, Meta, and Alphabet all engaged in crafting the Metaverse and the internet’s next evolution, it is logical for an exchange to strategically position itself to leverage emerging technologies.
Developments at Coincheck
Coincheck is advancing its market presence. March 2021 saw the launch of Coincheck NFT, Japan’s pioneering NFT marketplace. The following year, in March 2022, Coincheck announced a merger with Thunder Bridge Capital Partners IV, a special purpose acquisition company, preparing for a Nasdaq listing under the ticker CNCK.
In May 2022, Coincheck revealed its acquisition of “Otherdeed” land in the metaverse project Otherside by Yuga Labs, creators of the Bored Ape Yacht Club NFT. Otherside offers a metaverse gaming experience where NFT owners can convert their tokens into interactive avatars. Coincheck plans to introduce this NFT on its marketplace.
Japan stands out for its receptive stance towards cryptocurrency utilization and innovation compared to many nations. Since April 2017, under the Payment Services Act, Japan has officially acknowledged Bitcoin and alternative digital currencies as legal properties.
Operational Mechanics of Coincheck
Coincheck’s platform functions by aligning client orders. Crypto transfer fees are calculated in the corresponding transfer token. For instance, using Bitcoin incurs fees in the same currency.
Coincheck doesn’t limit itself to exchange services; it also facilitates Coincheck Payment, allowing enterprises to accept Bitcoin as payment. This is achieved through an API for web transactions or an app for retailers. Interested businesses need to establish an account, verify via SMS, submit identification, and download the necessary app.
Fast Fact
Due to regulatory challenges, Coincheck isn’t accessible to U.S. residents currently.
Post-hack, Japan’s Financial Services Agency (FSA) initiated a probe into Coincheck, discovering the absence of an FSA license during the breach.
Following the Payment Services Act, the Financial Security Commission (FSC) mandated all domestic cryptocurrency exchanges to rigorously implement know-your-customer (KYC) and anti-money laundering (AML) protocols. Coincheck has since conformed to these statutory requirements.
Coincheck’s journey started in 2012 under Rejupress, its parent entity. Initially, it offered simple exchange solutions, expanding to payment and lending services in 2016.
In January 2018, Coincheck was thrust into the limelight after hackers funneled $560 million in cryptocurrency from its digital wallets. These compromised “hot wallets” remained online (unlike offline-capable “cold wallets”). The massive theft announcement from Coincheck executives led to a nosedive in cryptocurrency valuations. The company committed to reimbursing affected users.
In April 2018, Monex Group, Inc., an online brokerage with a prominent regulatory foothold across Japan, the U.S., China, and Australia, acquired Coincheck. By 2019, the Japanese authorities had reinstated Coincheck’s operational status as a cryptocurrency exchange.
Is Coincheck Safe?
Coincheck is considered secure, as it is both licensed and regulated by Japanese authorities.
How Do You Use Coincheck?
To engage with Coincheck’s offerings, a user must set up an account and fund it. Subsequently, they can partake in cryptocurrency transactions via the platform.
Does Coincheck Have a Coin?
Coincheck doesn’t operate its own cryptocurrency, blockchain, or token. Instead, it provides a platform for approximately 22 cryptocurrencies and an expanding roster of NFTs.
Engaging in cryptocurrency and Initial Coin Offerings (ICOs) investments entails significant risk and speculation. This article is not intended as investment advice from the author or any affiliated entity. Every individual’s financial circumstances are distinct, and consulting a qualified expert prior to making investment decisions is advisable. The accuracy or timeliness of the information in this article is not guaranteed.
