Hello Wellfield Investors and Stakeholders,
I would like to start by taking the opportunity to congratulate Neal Sample on his new role as Executive Vice President and CIO at Walgreens. We recently announced that Neal Sample has accepted the role of Chair of the Board at Wellfield, replacing Marc Lustig, our founding chair. We are grateful for Marc’s contribution and ongoing support and are extremely excited to leverage Neal’s expertise as Wellfield enters a new stage of growth.
Before shifting focus and sharing details on our strategies surrounding gold related products and our decentralized financial services, we will summarize in this Newsletter the changes we have completed at Coinmama, our retail brand trusted by millions to buy and sell crypto since 2013.
Our strategy with Coinmama is straightforward and we are excited to see it now yielding tangible results. Our three-pronged approach: leverage the brand’s enduring trust and reputation, optimize operations for profitability, and expand our offerings with complementary products and services to improve customer retention and monetization.
Now that the operational reorganization is complete Coinmama operates as a profitable business, we are firmly in the third stage and are as enthusiastic and optimistic about
Coinmama’s prospects.
Coinmama is an Enduring Brand
Coinmama’s success comes from a decade of consistently providing a simple value proposition, great customer support, and reliable service. In an environment where consumers watch exchanges disappear, be proven frauds, and plead guilty to criminal and regulatory enforcements, Coinmama is one of the most enduring and trusted blockchain brands for consumers globally.
Our customers use Coinmama with confidence and this is showing in our signup and returning customer statistics. The industry has seen a steep decline in consumer interest over the last year and a half. And where other platforms have struggled to acquire new users, Coinmama benefited from 150,000 organic (unpaid) new user registrations to its platform in the first 9 months of calendar 2023. Coinmama enjoys consistent and reliable daily user acquisition from brand recognition alone even in challenging markets. And when consumer sentiment shifts as seen in October with speculation around Bitcoin ETFs, we see instant and direct increases in new users and revenues.
If interest in Bitcoin and cryptocurrencies sustains, Coinmama’s business model and the efficiencies we achieved, could soon translate into profitability for Wellfield as a whole.
Achieving Profitability and Growth
You may recall our announcement in the summer regarding operational changes that significantly reduce our expenses and boost Coinmama’s efficiency. Let’s summarize our progress to date in the second half of 2023, mostly under the new operational model which is reflected in our recent financial reports:
- We tripled the monthly number of purchase orders created on Coinmama platform.
- The average monthly actual purchases more than doubled during the past four months, compared with the monthly average of H1 2023.
- The average monthly number of first-time registrants that made at least one trade
tripled and we see a steady growth month over month.
- Similarly, the average monthly number of registered users during the past four months is up 154%, from the average monthly of H1 2023.
Since this reorganization, we witnessed an improvement in all key growth and revenue metrics and every indication suggests these improvements are sustainable and consistent.
Boosting Revenue Growth
Our focus with Coinmama has now turned to strategic marketing opportunities to boost user acquisition and launching new Coinmama products and services in the coming weeks and months (www.coinmama.com). Customer-centric revenue growth is the focus of the next phase in our Coinmama strategy, and we expect to see results in the short and medium term.
Beyond Coinmama
Amidst challenging market conditions, we’ve strategically acquired assets that resonate with our forward-thinking vision for blockchain. Each acquisition is meticulously chosen to ensure Wellfield remains at the forefront of the rapidly evolving blockchain ecosystem, and with a focus to accelerate the growth and adoption of the proprietary decentralized finance solutions that we will begin to launch in 2024.
The timing of our acquisition of Tradewind Markets earlier this year and our upcoming product launches align well with gold hitting all time highs in the last week. We acquired Tradewind Markets because we see a tremendous and untapped opportunity to digitize gold and make it compatible with decentralized finance. The team is focused on new and exciting efforts with these assets and our technology and we are looking forward to sharing more details soon.
Brane Trust is a business we are acquiring to establish trust and secure long-term relationships with institutional investors who require third party custody. We are continuing to work towards closing the Brane Trust acquisition and have been actively working with the management team to ensure a smooth and successful closing.
Please stay apprised of our developments through our forthcoming announcements. Best regards,
Levy Cohen
CEO/Co-Founder
Wellfield Technologies, Inc.
Wellfield Recent Press Releases:
Wellfield Technologies, Inc. Reports Q2 Financial Results for the Three Months Ended September 30, 2023 and Other Corporate Updates
Levy Cohen, CEO of Wellfield, commented, “This second fiscal quarter has marked a significant milestone in Coinmama’s ability to generate gross margins during a challenging market environment. With additional cost savings we expect to realize in the following quarters, Coinmama is now a strong and sustainable business that contributes meaningful gross margins as Wellfield prepares to launch new products and works toward profitability. Leveraging Coinmama’s large base of returning users and over 150,000 new user registrations during the calendar year, we anticipate that we have the customer base to quickly monetize Wellfield’s decentralized financial services and Ethereum based digital gold that will be launched to the public early next year.”
Wellfield Announces Appointment of Neal Sample to Chair of the Board in Preparation for Real World Asset Launch and New Revenue Streams
Levy Cohen, CEO of Wellfield, commented, “We’re deeply appreciative of Marc’s contributions as Chair of the Board. His leadership has been essential in guiding us to where we are today. As Wellfield evolves to add new revenue-generating products and executes its vision to digitize real world assets on blockchain, Neal Sample’s deep expertise in technology and finance will be invaluable in steering this exciting new
phase.”
Mr. Cohen added, “We’ve seen tremendous success executing on our strategy for Coinmama, and as we focus towards maximizing revenue opportunities in Wellfield
Capital and decentralized financial services, Neal’s deep experience and leadership are poised to play a critical role in our ongoing success.”