Home » Fledging Crypto Exchange Owner to Reward Shareholders with Bitcoin

Fledging Crypto Exchange Owner to Reward Shareholders with Bitcoin

Coincheck’s parent firm Monex Group has voted to give crypto to shareholders as a mid-term benefit on top of regular redeemable points. The Japanese online brokerage company said in a statement that for fiscal year 2019, shareholders will receive bitcoin as a mid-term benefit.
It says the benefit will apply to shareholders who are holding the firm’s stock as at the end of September. To receive bitcoin, shareholders must have an account with Coincheck and sign up for the program before the fiscal year ends in March 31, 2020.
Eligible shareholders will receive the benefit worth 500 JPY in addition to other benefits. This is equivalent to 0.00049 BTC or 49,000 satoshis.

Monex said that the move is driven by increasing interest in digital currencies among its shareholders:

“Responding to increasing aspiration for building assets in cryptocurrencies, the Company has decided to grant 500-yen equivalent cryptocurrency BTC to those shareholders who hold Coincheck accounts, which are operated by the company’s subsidiary Coincheck, Inc.,” said Monex.

Eligible shareholders will receive the crypto reward no matter the size of their stake in Monex Group. However, the Japanese financial services company stated that the advancement of the bitcoin rewards plan to its shareholders after the close of the current fiscal year will be dependent on future decisions.

The move by Monex to reward shareholders with crypto while requiring them to have Coincheck accounts seems to be an effort to promote business for the growing crypto exchange and parent organization.

Monex acquired the crypto exchange in April 2018, around three months after Coincheck had been hacked and crypto worth more than $0.5 billion was stolen. It was one of the largest crypto heists to date.

The Japanese financial services giant is also following the playbook of its local rivals in the digital brokerage niche who have won over a larger share of the market by launching services and products that cater to the cryptocurrency industry. For instance, SBI Holdings and Rakuten, currently command 36.3% and 18.7%, respectively, of the country’s retail stock trading market share.

On the other hand, Monex has a market share of just 5.2%. Both SBI and Rakuten have dipped their feet in the crypto sector by providing trading platforms.

SBI wholly owns and operates cryptocurrency exchange SBI VC Trade, while Rakuten also wholly owns and runs the Rakuten Wallet crypto exchange that began providing spot trading services in August 2019.

Earlier 2019, Yuko Seimei, the president of Monex Group’s primary subsidiary Monex Securities, revealed that the financial services company had “fallen a little behind.” As a result, Seimei indicated that to close the gap with its competitors, the strategy would have to change.

Apart from running a crypto exchange, Money Group also wholly owns and runs a cryptocurrency consultation company, Monex Crypto Bank, Inc.

The move by the company to reward shareholders with bitcoin is, however, not really new. In late August, a subsidiary of SBI Holdings announced that investors holding 100 or more of the firm’s stake would receive 30 XRP. Just like Monex, a major requirement for eligibility involved opening an account with SBI-owned cryptocurrency exchange SBI VC Trade.

Source: https://www.ccn.com/coincheck-crypto-exchange-owner-to-reward-shareholders-with-bitcoin/


About the author

Ezra Ondara

Ezra Ondara

Ezra Ondara is a freelance writer and journalist with a keen interest digital marketing, finance, real estate and insurance. He has a nose for news in these key areas and is determined to keep online readers and enthusiasts up to date with real stories as they happen from all around the globe. When he’s not poking his nose into the business world, he will be watching the Premier League over the weekend or out of town with his family.

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