After days of speculation it seems that early today (5th April 2018) damaged cryptocurrency exchange Coincheck accepted a bid from Tokyo firm Monex.
The value of the bid is still not known but is expected to amount to Billions of Yen, rather than Millions.
The colossal value of the takeover suggests that Monex mean business here and that this is not just a gentle acquisition designed to get their foot in the door with regards to cryptocurrency trading.
According to a number of news outlets within Japan, Coincheck have accepted a bid, this is great news for Monex (obviously) but also for the onlookers who have been watching this story from its inception. Both Monex and Coincheck have had very little to say about the matter, in fact some reports did surface saying that Monex had denied having any involvement with or intentions to purchase Coincheck.
Of late, Coincheck has had a lot of bad press after its infamous hack in January, which lost the exchange $542million. Since then, Coincheck has been encouraged to meet new financial standards which it has failed to achieve, this gives Monex an awful lot of work to do if indeed the takeover is going to happen.
Why is this big for Monex?
Despite its recent disasters, Coincheck still has a huge customer base, which Monex will be able to take advantage of once the acquisition is complete. Perhaps ‘take advantage’ is the wrong wording here but you see what I mean. Purchasing Coincheck is almost a guaranteed method for making a big impact in the cryptocurrency world, without having the start from scratch. It gives Monex a huge head start.
With that in mind though, pressure from financial standards will exist from the outset, they will have to clean up Coincheck’s act and will probably have to erase numerous mistakes that have in the past tainted the reputation of Coincheck. I hope that they do have a plan of action because I’m certain they will need to take action from day one.
Either way, the sheer fact that they kept hold of the majority of their customer base means that people still believe that Coincheck will rise from the ashes. It seems that to do this, it just needs a little boost from Monex first.