As reported by Cointelegraph, the move seems especially timely given indications of a new bull run market cycle. Still, in a market as complex as Japan, questions abound as to whether Taotao will be able to outperform its current rivals while also fending off future competition.
Taotao was first mentioned in March 2018 when the Nikkei Asian Review newspaper reported that the firm planned to acquire 40% of Tokyo-based crypto exchange BitARG. This purchase would have been made through Tokyo’s YJFX retail foreign exchange broker, which is wholly owned by Yahoo Japan.
The acquisition was eventually confirmed by both Yahoo Japan and BitARG, with the 40% stake costing the internet corporation between 2 and 3 billion yen (US$19-27 million). Taotao is now uniquely positioned to bring new clients into the crypto space from Yahoo Japan’s mainstream businesses.
Taotao entrance comes as interest has been reigniting among Japanese cryptocurrency holders, as well as among entry-level investors since the end of March.
Indeed, although the timing is particularly advantageous for the Yahoo Japan-backed trading platform, it remains an open question as to whether the Japanese public would be willing to leave long-established trading platforms, such as biFlyer and Liquid, for the new exchange.
Even leveraging Yahoo Japan’s extensive digital footprint and consumer base, Taotao will also be facing competition from large exchanges still poised to enter the Japanese market, such as U.S.-based Coinbase.
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