Pus500, an online exchange concentrating in contracts for difference (CFDs), has seen a spike in its performance in its first quarter during a time when there was an increase in demand for cryptocurrency trading.
The London-listed Plus500 that is headquartered in Israel gained from the instability in cryptocurrency prices as manifested in the sharp increase of the company’s revenue by 280 percent in the first quarter to $297.3 million.
However, the firm has toned down its revenue projections for the rest of the year, warning the sharp performance will not last for long as the market tries to normalize and adjust itself.
In a statement released by the company, it stated that, “The very strong start to the year, which was referred to in our preliminary announcement of 14 February 2018, resulted from a period of relatively volatile markets and high levels of interest in the Company’s cryptocurrency CFDs offering, and in turn encouraged high levels of New Customer sign-ups and record trading in Q1 2018.”
Certainly, the number of active users who have completed at least one trade in the quarter rose more than 200 percent higher to more than 218,000 compared to the previous year. In the interim, Plus500 has been able to draw in close to 73,000 new investors to its trading platform in 2018, showcasing over a 200 percent increase on a sequential basis. As users continue to spend more money, margins remained strong while the cost of acquisition fell.
“We have since seen market conditions return to more normal levels in the last two months. As such we do not expect such an exceptional performance to be repeated in the remainder of the year,” the company announced.
Plus500 and other companies in its field are planning ahead for new regulations that will be implemented, which the firm expects “will enhance the CFD trading landscape and create a more level playing field.”