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In Could, crypto alternate KuCoin raised US$150 million in its pre-Collection B funding spherical, bringing its valuation to US$10 billion. The funding was led by Bounce Crypto and included different traders reminiscent of Circle Ventures, IDG Capital, and Matrix Companions.
Though KuCoin is thought primarily for its alternate companies — with over 600 cash listed and round US$2 billion recorded in each day buying and selling quantity — it’s now trying to enterprise into different areas of blockchain expertise. This consists of exploring play-to-earn video games, NFTs and decentralised finance (DeFi) protocols.
Right here’s a take a look at how Singapore-founded firm KuCoin rose to grow to be a ‘unicorn’ and one of many largest crypto exchanges on the planet.
How did KuCoin begin?
The concept behind KuCoin was first dreamt up in 2013 by two of the corporate’s co-founders, Michael Gan and Eric Don. At a time when cryptocurrency had solely simply begun to emerge, the 2 have been among the many first to grasp its potential.
As they explored the sphere, they discovered it extraordinarily tedious to purchase and promote crypto. Even the most important buying and selling platform on the time, Mt. Gox, was pretty difficult to navigate. Decided to unravel this downside, Gan and Don got down to code their very personal crypto alternate.
It might be one other 4 years earlier than KuCoin’s alternate noticed the sunshine of day. Established in Singapore in 2017, the platform raised US$27.5 million by means of its preliminary coin providing (ICO).
Buyers have been capable of purchase the KuCoin (KCS) cryptocurrency, which was offered with the next incentive: 50 per cent of the income generated on KuCoin by means of buying and selling charges could be distributed amongst KCS holders. This continues to carry true at present.
Inside three months, Kucoin had over 300,000 registered customers — a charge of development which was virtually unprecedented on the time within the crypto business.
Given its success, the platform held its first fairness funding spherical quickly after. A complete of US$20 million was raised, primarily from IDG Capital and Matrix Companions, each of which participated in KuCoin’s most up-to-date funding spherical too.
How is KuCoin totally different from different crypto exchanges?
Dozens of latest crypto exchanges have been established over the previous two years, however KuCoin has managed to continue to grow at a gradual charge. In December 2021, the platform reached a person base of 10 million individuals.
One of many elements which units KuCoin aside is its give attention to altcoins. The platform manufacturers itself because the ‘high altcoin alternate’, providing lots of of crypto cash which may’t be discovered on different exchanges.
Itemizing requirements differ between platforms, however many centralised exchanges solely provide established cryptocurrencies with massive market caps.
For customers trying to speculate on lesser-known cash, this may be an inconvenience. They’re compelled to switch their holdings and use a decentralised alternate to purchase their most popular altcoins. KuCoin helps tackle this downside by means of its wider vary of choices.
One other facet which helps KuCoin stand out is its give attention to neighborhood. Via its social buying and selling characteristic, the platform permits customers to work together with neighborhood leaders, influencers, and different traders who’ve comparable buying and selling preferences.
KuCoin CEO Johnny Lyu, who can be the co-founder, believes that that is integral to mass crypto adoption and one thing which has usually been missed.
“Most practitioners within the crypto business have been specializing in constructing higher instruments to enhance the interplay between people and protocols,” Lyu mentioned in 2021. Facilitating interactions between people wasn’t seen as a precedence.
“This has led to the growing instructional prices and gradual tempo of popularisation of the business, therefore creating obstacles for mass adoption.”
The place does KuCoin go from right here?
As blockchain expertise continues to debut new utilities, KuCoin is branching out from its alternate companies. The platform has been wanting into DeFi, NFTs and the metaverse since 2020, and plans to delve deeper with its newest spherical of funding.
KuCoin Labs, which was established in 2021, is the corporate’s analysis establishment devoted to figuring out promising crypto initiatives and serving to them obtain sustainable development. Armed with a US$50 million fund, it has labored with notable initiatives reminiscent of Bloktopia, Antimatter, and Star Terra.
Over on the NFT aspect of issues, KuCoin introduced its US$100 million ‘Creators Fund’ in April, which will probably be overseen by its enterprise capital arm, KuCoin Ventures and NFT market, Windvane.
The fund is devoted to incubating early-stage NFT initiatives which cowl fields reminiscent of artwork, sports activities, GameFi, and Asian tradition.
“On the present stage of KuCoin’s enlargement of the Internet 3.0 and NFT fields and deepening the KuCoin ecosystem, the launch of the US$100 million ‘Creators Fund’ will undoubtedly deliver a powerful impetus to our improvement course of,” says Lyu.
Featured Picture Credit score: KuCoin / Johnny Lyu
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