Number of Africa-based users of the Kucoin platform increases by 200% in the first 10 months of 2021 – Interview with Bitcoin News


While Africa lags far behind the rest of the world on many other metrics, it appears to have taken the lead when it comes to cryptocurrency or blockchain.

Africa-based Kucoin users will skyrocket in 2021

In African countries plagued by currency problems or hyperinflation, cryptocurrencies have become a real alternative store of value. These same digital currencies are also increasingly becoming the preferred means of payment for transfers or cross-border payments.

In other words, cryptocurrencies have real uses in Africa alongside trading. However, as Johny Lyu, the CEO of Kucoin – one of the largest crypto exchanges in the world – notes, many African cryptocurrency users or owners are starting to become more interested in the trading side of things.

In fact, in his written responses to questions sent to him on Linkedin, Lyu reveals that more African users are venturing into futures or margin trading. The CEO also explains how his organization is preparing for a future trillion dollar industry.

Below are some of Lyu’s answers to the questions asked by Bitcoin.com News.

Bitcoin.com News (BCN): What have African users bought the most this year?

Johnny Lyu (JL): BTC, ETH, SOL, KDA and LUNA are projects that most African users keep an eye on. With the advent of NFT, Gamefi and Metaverse, native tokens of these industry-related projects were also listed in the portfolio of African users, such as BLOK, DREAMS, etc. In addition, under the influence of market sentiment, meme-coins such as DOGE, SHIB and ELON have also been attracting attention attracted African investors.

BCN: What does this traffic mean?

JL: Along with the surge in traffic, the number of new African users of Kucoin has also shown explosive growth, showing a new wave of traditional capital in the crypto world. The acceptance of blockchain and cryptocurrency in Africa is increasing, which also points to the accelerating development of the crypto industry. Blockchain could be the next big thing after the internet, and all countries are on the same starting line, so we believe blockchain can be an opportunity for developing countries to catch up with their developed counterparts.

BCN: How have user numbers and trading volumes changed?

JL: Both the number of African users and the volume of trading on the Kucoin platform have increased every month since the beginning of 202. The trading volume calculated for October 2021 increased by 74% compared to the previous month and the number of newly registered users increased by over 200%. So far, the stock market has maintained the same rate of growth.

BCN: Which products are most commonly used in Africa?

JL: The majority of African users are now using spot trading. In November 2021, the spot trade volume took the top spot among all trade products with 60%. However, we did see a growing interest in margin trading, which was up 143% in October 2021 compared to the previous month.

BCN: Kucoin Labs, an investment arm of Kucoin, recently launched a $ 100 million fund to support Metaverse projects. Can you tell us why your organization made such a big step so early?

JL: As the “home of altcoins and crypto gems”, Kucoin has always been very sensitive to the latest trends on the market. Metaverse is the next chapter of the internet and we believe it will change many aspects of our society. Our mission is to help projects that are starting to enter the Metaverse segment and introduce them to our users. We will identify projects that are actually developing and reject those that are currently riding the wave of hype. It is important to start now in the market formation phase.

Sometimes technologically worthy projects are overshadowed by lack of marketing budgets, inadequate media coverage and community support in the face of the darkness of weaker projects. Some other startups with similar ideas could have the upper hand, either in technology or in marketing. Often a startup with strong marketing efforts and no technological basis displaces a technologically superior competitor from the market. This creates a dangerous situation similar to what happened in 2017-18 when many ICO projects turned out to be a scam. Kucoin Labs will certainly help build a healthy market by supporting technological literacy and innovation.

BCN: Some of the money for this Metaverse fund is earmarked for educational programs, according to a report. Can you tell us the amount that will be used for this?

JL: Grants for technologically strong projects are not the only item in our spending. The training of young professionals is very important for a fast growing and high-tech industry like blockchain. We have not included any specific figures in the publication as this would be wrong as we are ready to spend as much as necessary on the education component. You can’t just say, “Okay, let’s spend ten million dollars on a hackathon!” Learning is an on-going process, while a development grant is limited.

We are ready to invest a lot in training young talent, but we don’t know how many of them there are, and that determines the cost of the training. There is enough space for everyone in Kucoin Labs educational programs and we will not act like universities which sometimes have a limited number of positions for applicants.

BCN: What else should be done besides the educational programs to get as many people as possible on board with metaverse?

JL: The industry needs people with passion, the mind and the willingness to work hard. I know many such people in the crypto industry among my friends, colleagues, and partners. You will create products that will attract users without additional incentives.

What do you think of this interview? Let us know what you think in the comments section below.

Photo credits: Shutterstock, Pixabay, Wiki Commons

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Number of Africa-based users of the Kucoin platform increases by 200% in the first 10 months of 2021 - Interview with Bitcoin News

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