KuCoin AMA recap
The session of AMA (Ask Me Anything) with KuCoin CEO Johnny Lyu was conducted on 21st April 2020 at 4:00 PM IST.
We along with community members were very excited because it was our first time we were hosting AMA with such a giant global exchange. As we all know KuCoin is one of the largest cryptocurrency exchanges in the world and growing rapidly in Asian markets too. KuCoin ranks in the top 20 globally in terms of liquidity.
Live AMA at @CrytoPlayers started with a brief introduction by KuCoin CEO Johnny Lyu. Within 2 mins there were more than 450 questions by each member, however only 7 questions from Telegram & 3 from Twitter have been answered & selected for the reward. Here are some highlights of the AMA.
INTRODUCTION
Johhny Lyu (CEO KuCoin):
I used to work in the auto and luxury industry. In 2017, I joined KuCoinas the co-founder and I used to be in charge of BD, listing, investment at KuCoin.
It is Michael who led me to the crypto world. We are high school classmates. Michael used to be a Bitcoin miner and a user of Mt.Gox. He bought around 1000 BTC at the price of $10. And all these BTC went away with Mt.Gox. Actually that is one reason why we wanted to create an exchange that is super easy-to-use and secure, and that’s why we now have KuCoin.
ADMIN ROUND
Priyank Gupta (Host):
The 2020 Year going good In terms of development, Can you tell us in 2020 What are the features you guys added to KuCoin and what we can see in Upcoming months?
Johnny Lyu (CEO KuCoin):
Good question. In the past two years, KuCoin has grown into a well-known trading platform in the crypto industry. As we can see, many users like KuCoin because we have more than 200 tradable digital assets, secure and easy-to-use trading experience, and very supportive customer service.
In the first half of 2020, We launched USDT futures on our futures trading platform KuMEX to support more cryptocurrencies in addition to BTC. And we put lots of efforts into Pool-X as well, such as POL listed on KuCoin.
we will have many new products and services in the coming months, such as KuChain and KuDEX. All of the above businesses have the potential to create another “KuCoin” within this year, and all businesses will contribute to the intrinsic value of KCS. So, stay tuned!
Though already working at KuCoin for more than 2 years, I’m still new as a CEO. Expecting your help and support!!
TWITTER ROUND
Pramod:
What will be the use case and benefits of POOL-X token..!!
And
Why do KuMEX believe that providing useful and different trading instruments is the next logical step for the development of digital currency markets?
Johnny Lyu (CEO KuCoin):
I suppose many of you may not be very familiar with POL, so I’d like to talk more about it.
POL is the world’s first decentralized token without any team or individual pre-mining or investing. Currently you can get POL through LockDrop, or staking your PoS token on Pool-X or buying from KuCoin.
Recently, the PoS consensus mechanisms and staking economy have developed rapidly. As of last month, there were more than 70 projects participating in staking in the market. Although PoS will become increasingly mainstream, there are still many factors that stop users from staking, such as the liquidity risk during staking. Pool-X is a free market that solves the liquidity problem of staked crypto. As the native token on Pool-X, POL could work as the transaction media of the liquidity trading market, allowing users to trade their staking assets with unstaked counterparts.
We think crypto assets using PoS consensus mechanisms will account for 90%, that is, more than 60% crypto assets of the entire network will be in the staked status in the future. The liquidity needs of such huge crypto assets will be described in terms of the value of POL.
The price of POL will be defined by the volatility of PoS tokens. For instance, when the price of ATOM pumps or dumps hardly, many users will come to Pool-X to buy or sell their staked ATOM token and use POL to pay the fee, leading to an increase in POL demand and benefiting its price as well.
You can find more info about Pool-X at: bit.ly/Pool-XStaking
Regarding the question about trading instruments, compared with the traditional finance market, the development of the crypto market is still at its first stage, and most users lack sufficient knowledge of blockchain and trading experience. Driving the mass adoption of crypto is the long term goal at KuCoin, and that’s why we’d like to introduce more trading instruments and do more education to help people know more about crypto and make better investment decisions.
Recently, we partnered with NewsCrypto to launch the Crypto School Program. We hope that every user participating in the market can fully understand the relevant knowledge of crypto, recognize the potential risks of the market, and manage it effectively. And we will continue to launch new courses to meet your learning and investment needs, and promote the mass adoption of blockchain technology and crypto in the next 5–10 years.
BTC4life76:
What are the special features of KuMEX platform how this platform protect the traders from unusual liquidation caused by market manipulation?
Johnny Lyu (CEO KuCoin):
First, KuMEX might be the most user-friendly futures trading platform. Second, KuMEX is the only contract platform that supports Level 3 data push. With Level 3, you will be able to check every single trade ,which means the platform is 100% transparent.
Also, KuMEX has a fairer index price, leading to a better mechanism to protect users’ positions. The Bitcoin Spot Index used by KuMEX is the volume-weighted average US dollar price of Bitcoin across six exchanges, which ensures the index price on KuMEX is fairer, avoiding the user’s contract being liquidated due to the low liquidity of the trading platform or large price fluctuations of one or two spot exchanges.
For instance, last September, BTC price dumped over $1000 in a single day, during this dump, the lowest index price on KuMEX is 8114 while it is 7856 on OKex, which means for the positions whose liquidation price is between 7856 and 8114, your position will be liquidated on OKex while not on KuMEX
Also, you may know that most futures platforms have an insurance fund, but different platforms use it differently. I know that some platforms only use like 20% or 30% of their insurance fund in a single day, which means the rest of the losses will be covered by users. But for KuMEX, all the funds in our insurance fund will be used to cover the unexpected losses.
Cenk37551769:
What are the main Advantages of KUChain? Is Kucoin have any plans to launch Kucoin DEX on KuChain?
Johnny Lyu (CEO KuCoin):
This is a good question. I’d like to share more info with you regarding the KuChain we are working on. KuChain proposes a permission-free decentralized financial framework. Through proper abstraction and reasonable stratification, KuChain will enable users to get rid of the complexity of the base layer of blockchain, covering on-chain, off-chain, and all kinds of use cases. It will fit into various front pages with high scalability that allows consistent evolution, so as to help all types of developers build their own chain and service in the system.
KuChain will be a truly decentralized public chain. We are now working on the testnet. KuDEX might be the first dapp on KuChain. Hopefully it could be launched in the second half of this year. We will soon release more details and open the community for developers.
TELEGRAM ROUND
Pramod:
📌Kucoin liquidity, as well as amount of dividends, are decreasing..! what action you plan to introduce to engage more traders and raise interest to stake Kucoin ?
Johnny Lyu (CEO KuCoin):
Regarding the liquidity, we care more about the bid-ask spread than the trading volume, for most major tokens on KuCoin, the bid-ask spread is really small. Take BTC/USDT trading pair as example, the spread is only 0.1 usdt for most of the time.
Users can easily buy a few BTC at KuCoin without impacting the price much. Meanwhile, we are encouraging more market makers to join KuCoin to bring a better trading experience to everyone
Crazy for encryption:
How is your cashflow? given the rigorious market situation, can you still cover your cost?
Johnny Lyu (CEO KuCoin):
As an exchange, our earning will be influenced by market situation. At the same time, we are still making a profit. Besides, we got 20M funds from IDG and Matrix, which will also help us to maintain a sustainable growth.
Ieo:
Due to covid 19 worlds economy turn down and most of your traffic come from USA , Do you have any plan to develop kucoin in Asian countries?
Johnny Lyu (CEO KuCoin):
We do care about the COVID-19 situation worldwild and we are working on how to help. We have a very global user base, our 5M users are from 200+ different countries and regions. We have many users from Asia such as Indonesia, Vietnam, Thailand, etc., we will do our best to attract more users in the future.
Mantosh Debnath:
i want to know about recent fud around kucoin anout singapur court locking kucoin domain?
Johnny Lyu (CEO KuCoin):
Recently there are some rumors about KuCoin domain, we have clarified in our official announcement. Everything about the operation and domain of KuCoin is normal. Please rest assured
Andra:
What do you think about Crypto and role exchange for India?
Johnny Lyu (CEO KuCoin):
For most developing countries, blockchain and crypto is a very good chance for those countries such as India to develop. KuCoin has recently launched 50M support plan exclusively for India market, and we hope KuCoin can help more india users benefit from blockchain tech and crypto.
Ferry Haryanto:
Mr johnny Lyu,
Why is the dusk collector feature take so long available on KuCoin?. I’ve waited a long time for this feature.
Johnny Lyu (CEO KuCoin):
The feature is in developing now, hopefully it will be live in Q2 2020.
Rony Boy:
🖌️It seems that the $KCS token has a very important role, can you tell about its potential? What are some ways users can make a profit by joining your Exchange ? And what will reduce the inflation of $KCS tokens?
Thanks 🙏
Johnny Lyu (CEO KuCoin):
KCS is the backbone of all the business of KuCoin. We have just completed the 10th KCS burn, so more than 10% of the total KCS supply has been burnt. Along with the development of KuChain. KCS will play a important role in KuCoin ecosystem than ever. So I think KCS is very potential, please put an eye on KCS.
AMA ended at 5:15 PM IST. It was our pleasure to host AMA with KuCoin’s CEO, quite informative & knowledgable AMA it was. Have a look at AMA statistics:
Host from CryptoPlayers
1. @bshek — Founder
2. @priyankg3 — ManagerSpeaker from KuCoin
1. Johnny Lyu — CEOAMA Stats:-
Total Questions — 641
Telegram — 481
Twitter — 160
Total Answers — 13
Total Members — 9340
