Is It The End Of ICOs?
KuCoin finally starts afresh with $20 million in funding from venture capitals, allowing the Singaporean exchange to redeem itself from the allegations of solvency and lack of legitimacy earlier in the year. IDG and Matrix Partners apart from China-based VC Neo Global Capital are the investors in this infant exchange now. This high-profile funding spree does mark the return of some of the biggest names in traditional fiat-funding institutions and reopens the debate on crypto projects having to return to the haloed portals of fiat-funding groups and exit the now-tainted tokens and Initial Coins Offering (ICO) route.
Today, we are thrilled to announce that we have closed our Series A Round of Funding, raising $20 million (USD) from IDG Capital, Matrix Partners and Neo Global Capital to bring cryptocurrency to the masses. pic.twitter.com/cofB3QkJPc
— KuCoin Updates (@KuCoinUpdates) November 14, 2018
KuCoin is also expected to follow the same strategy, especially after its relocation to Singapore earlier in the year.
Kucoin new lease of life
Back in August this year, a local journalist had accused KuCoin of being an illegitimate business as the registered office buildings were unoccupied for over 2 years. Despite justifications by the business, it continued to be identified as a risky-business organization.
KuCoin despite the media debacle hopes to get investors to by opening new doors, according to CEO Micheal Gan. After commencing operations in 2017, the exchange has grown steadily and is now ranked 49th largest exchange according to Coinmarketcap.com.
Focus on pro traders
Thus, with a daily trading range of $25 million, the CEO hopes to use the new funds to build infrastructure and technical manpower especially in the line of hiring new developers and extending the support team.
As a transactional platform, KuCoin’s primary focus is expected to be traders of all strengths. For the professional and the serious traders, the platform will offer feature-packed options apart from ensuring transactions are faster, along with stop-loss features.
The final roadmap, as with all decentralized ledger technology users is for KuCoin to eventually become the “decentralized exchange, Dex.” It also wants to nurture ‘communities’ in Vietnam, Spain, and Russia before the end of the year by using marketing techniques such as online advertisements.
Do these latest funding patterns for crypto projects mark a shift from the earlier ‘unregulated’ practices of native processes such as tokens in lieu of funds? Does this mean that ICOs could soon be history or it could morph into newer format? These questions need to be answered for the crypto adoption to go mainstream.