Crypto exchange KuCoin reaches US$10B valuation in latest funding round


Jun 2, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

In Could, crypto trade KuCoin lifted US$150 million in its pre-Series B funding round, bringing its valuation to US$10 billion. The funding was led by Soar Crypto and incorporated other buyers these types of as Circle Ventures, IDG Cash, and Matrix Companions.

Whilst KuCoin is recognized mainly for its exchange services — with in excess of 600 cash shown and all over US$2 billion recorded in everyday trading quantity — it’s now searching to enterprise into other regions of blockchain technological know-how. This consists of discovering engage in-to-get paid video games, NFTs and decentralised finance (DeFi) protocols.

Here’s a glimpse at how Singapore-started business KuCoin rose to grow to be a ‘unicorn’ and a person of the greatest crypto exchanges in the environment.

How did KuCoin start?

Michael Gan, co-founder of KuCoin / Picture Credit score: LetKnow.Information via Medium

The strategy at the rear of KuCoin was very first dreamt up in 2013 by two of the company’s co-founders, Michael Gan and Eric Don. At a time when cryptocurrency had only just begun to emerge, the two were being among the the initial to realise its opportunity.

As they explored the field, they observed it particularly tedious to invest in and offer crypto. Even the most significant investing platform at the time, Mt. Gox, was quite difficult to navigate. Identified to fix this issue, Gan and Don established out to code their very personal crypto exchange.

It would be an additional four yrs right before KuCoin’s trade observed the gentle of day. Proven in Singapore in 2017, the system elevated US$27.5 million by its initial coin providing (ICO).

Investors had been in a position to obtain the KuCoin (KCS) cryptocurrency, which was presented with the subsequent incentive: 50 for each cent of the profits generated on KuCoin by investing fees would be distributed amid KCS holders. This continues to hold genuine right now.

In just three months, Kucoin had over 300,000 registered consumers — a level of expansion which was nearly unprecedented at the time in the crypto field.

Offered its success, the system held its first equity funding round quickly following. A overall of US$20 million was lifted, mostly from IDG Money and Matrix Partners, each of which participated in KuCoin’s most the latest funding spherical as well.

How is KuCoin distinctive from other crypto exchanges?

Dozens of new crypto exchanges have been established about the earlier two many years, but KuCoin has managed to hold escalating at a steady amount. In December 2021, the system reached a user base of 10 million individuals.

A person of the components which sets KuCoin aside is its aim on altcoins. The platform makes itself as the ‘top altcoin exchange’, presenting hundreds of crypto coins which simply cannot be located on other exchanges.

Listing benchmarks vary concerning platforms, but a lot of centralised exchanges only supply established cryptocurrencies with substantial market place caps.

KuCoin lists new coins on a day by day foundation / Screenshot of KuCoin

For customers searching to speculate on lesser-identified coins, this can be an inconvenience. They’re pressured to transfer their holdings and use a decentralised trade to buy their favored altcoins. KuCoin allows handle this problem by way of its wider variety of offerings.

A further facet which assists KuCoin stand out is its target on neighborhood. By way of its social investing function, the platform makes it possible for end users to interact with local community leaders, influencers, and other buyers who have comparable investing choices.

KuCoin CEO Johnny Lyu, who is also the co-founder, thinks that this is integral to mass crypto adoption and a little something which has normally been disregarded.

johnny lyu kucoin ceo
Johnny Lyu became the CEO of KuCoin in 2020 / Graphic Credit: KuCoin

“Most practitioners in the crypto business have been focusing on developing far better instruments to boost the conversation amongst people and protocols,” Lyu stated in 2021. Facilitating interactions in between human beings was not seen as a precedence.

“This has led to the expanding educational charges and gradual pace of popularisation of the business, for this reason generating hurdles for mass adoption.”

The place does KuCoin go from in this article?

As blockchain know-how continues to debut new utilities, KuCoin is branching out from its exchange providers. The platform has been on the lookout into DeFi, NFTs and the metaverse given that 2020, and plans to delve further with its latest spherical of funding.

KuCoin Labs, which was recognized in 2021, is the company’s exploration establishment devoted to determining promising crypto initiatives and assisting them obtain sustainable growth. Armed with a US$50 million fund, it has labored with notable jobs these types of as Bloktopia, Antimatter, and Star Terra.

Around on the NFT facet of points, KuCoin announced its US$100 million ‘Creators Fund’ in April, which will be overseen by its undertaking money arm, KuCoin Ventures and NFT market, Windvane.

The fund is devoted to incubating early-stage NFT tasks which include fields these as artwork, sporting activities, GameFi, and Asian tradition.

“At the present-day phase of KuCoin’s expansion of the World wide web 3. and NFT fields and deepening the KuCoin ecosystem, the launch of the US$100 million ‘Creators Fund’ will undoubtedly bring a sturdy impetus to our improvement course of action,” states Lyu.

Showcased Graphic Credit score: KuCoin / Johnny Lyu

By diana