SafetyDetectives spoke with Johnny Lyu, CEO of KuCoin, about many things, including his role at the company, what makes KuCoin a unique cryptocurrency exchange, how he sees the future of the crypto industry, and he gave some advice for anyone starting to trade or invest in crypto.
Can you tell us about your background and how it led you to KuCoin?
As the CEO of KuCoin, I am proud to lead a team that is committed to making digital assets accessible to everyone. My journey to KuCoin began with my extensive experience in the e-commerce, auto, and Tech, which gave me a solid foundation in business and operations. However, it was my passion for blockchain technology and its potential to transform the financial system that led me to KuCoin and the talented founders.
When I first met the founding team, I was struck by their unwavering faith in the transformative power of blockchain technology. They had a vision to create a global trading platform that would serve everyone, regardless of their level of education, employment status, or access to traditional banking. Their passion for democratizing finance was contagious, and I knew immediately that I wanted to join their mission.
Together, we founded KuCoin, a platform that has since become a leading exchange with over 700 tradable assets and innovative products like KuCoin 2.0, Spotlight, Futures, Earn, and Margin Trading. We have received accolades and recognition from industry experts, including Finder’s 2023 Global Cryptocurrency Trading Platform Awards, Forbes Advisor, and The Ascent. Our recent pre-Series B funding round led by Jump Crypto, which valued KuCoin at $10 billion, is a testament to the platform’s success and potential for further growth.
At KuCoin, we are not content to rest on our laurels. We are constantly exploring new opportunities and expanding the boundaries of the crypto industry. We are proud to be at the forefront of decentralized finance, and we are committed to bringing crypto to the mainstream. Our mission is to create a more inclusive financial system that serves everyone, and I am honored to be part of a team that is making this vision a reality.
How does KuCoin differentiate itself from other cryptocurrency exchanges in the market?
KuCoin is a cryptocurrency exchange that differentiates itself from other exchanges in several ways. Firstly, KuCoin places a high priority on security, with advanced encryption technology, two-factor authentication, and a multi-level risk identification system in place to ensure the safety of users’ assets. Additionally, KuCoin has a dedicated team that monitors security 24/7.
Secondly, KuCoin’s “People’s Exchange” philosophy means that the interests of its users come first. The selective listing process involves due diligence and a review of every key aspect of a project before it is listed on the exchange. This ensures that users have access to quality projects that have been thoroughly vetted. The monthly Proof of Reserves (PoR) programme provides users with transparent and regular reports on KuCoin’s reserves to ensure the safety of users’ assets. Moreover, a $1 million bug bounty programme is in place to further strengthen the security of the platform and protect users’ funds.
KuCoin has a unique Glocal strategy that sets it apart from other exchanges. It is setting up regional headquarters to better serve its users globally. The regional offices will be located in major financial hubs, enabling KuCoin to have a better understanding of the local market and requirements and providing a more localised service to its users.
KuCoin offers a diverse range of services, including spot trading, margin trading, futures trading, and staking. KuCoin also has its own blockchain and has launched innovative products such as KuCoin 2.0, Spotlight, and Earn (formerly known as Pool-X). KuCoin Labs, the research and development arm of KuCoin, has launched a $50 million fund to support early-stage blockchain projects with high growth potential. The initiative is part of KuCoin’s commitment to supporting innovation in the blockchain industry and providing its users with access to quality projects.
In conclusion, KuCoin’s commitment to security, user-centric approach, diverse range of services, and global presence through its Glocal strategy make it a reliable and unique option for cryptocurrency trading. Furthermore, initiatives such as the monthly PoR reports, and bug bounty programme demonstrate KuCoin’s transparency and commitment to its users’ safety and security.
Can you walk us through KuCoin’s listing process for new cryptocurrencies, and what criteria you use to evaluate potential listings?
As the People’s Exchange, KuCoin takes the listing process very seriously and uses a selective approach to ensure that our users have access to quality projects. The listing process follows three main stages: due diligence, agreement discussion, and listing preparation and integration.
During the due diligence stage, KuCoin’s professional team reviews all key aspects of the project, including the team, technology, community, market demand, and potential risks. This is to ensure that the project meets our standards and has a strong potential for growth.
Once the due diligence stage is complete, agreement discussions take place between KuCoin and the project team. This includes negotiations around fees, listing requirements, and other relevant details.
Finally, during the listing preparation and integration stage, KuCoin prepares for the listing and integrates the project onto the exchange. This includes setting up trading pairs, ensuring the project is compatible with KuCoin’s security protocols, and conducting any necessary testing.
In terms of criteria used to evaluate potential listings, KuCoin considers factors such as the project’s technological innovation, market demand, team expertise, and community support. We also consider the potential risks associated with the project and its overall fit with KuCoin’s vision and values.
In summary, KuCoin’s listing process is highly selective and rigorous, with a focus on ensuring that our users have access to quality projects that have been thoroughly vetted.
How do you see the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) impacting the broader cryptocurrency ecosystem?
The rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has brought about significant changes to the broader cryptocurrency ecosystem. DeFi has created new opportunities for investors by offering financial products and services that are accessible without any barrier to entry or identification requirements, and with total value locked (TVL) in DeFi protocols standing at $49.82 billion as of early March 2023, institutional investors are showing increasing interest.
DeFi derivatives, which are smart contracts hosted on the blockchain, offer investors exposure to an asset’s value and the ability to hedge price risk without owning the asset, transforming not just the derivatives market but also the overall securities market. NFTs, on the other hand, have revolutionised the way digital assets are owned, bought, and sold. They have opened up new opportunities for creators and collectors to monetize digital content, such as artwork, music, and other forms of digital media, by offering unique and tamper-proof digital assets stored on a blockchain.
This has made NFTs valuable in a variety of industries, including gaming, art, and sports, among others. Overall, the rise of DeFi and NFTs has made the cryptocurrency ecosystem more diverse and inclusive, with new opportunities for investors, creators, and collectors alike. The growth and investment in DeFi have been one of the key developments in the digital asset market and crypto ecosystem, with increasing interest from institutional investors, while the emergence of Web3 and its related technologies, such as NFTs, have drawn attention and interest to crypto as an emerging asset class with promising investment opportunities.
Can you discuss some of the main risks associated with investing in cryptocurrency, and how investors can mitigate these risks?
Investing in cryptocurrency carries several risks, including security risks, market volatility, regulatory risks, and technical risks. To mitigate security risks, investors should ensure they use reputable exchanges and wallets, and employ strong passwords and two-factor authentication. They should also be wary of phishing scams and other forms of social engineering attacks.
To manage market volatility, investors should avoid putting all their eggs in one basket and diversify their portfolio. They should also have a long-term investment strategy and not be swayed by short-term market fluctuations. Regulatory risks can be mitigated by staying informed about the legal landscape of cryptocurrency in their jurisdiction and being aware of any changes that may impact their investments. Technical risks can be addressed by staying informed about the underlying technology and potential vulnerabilities, as well as avoiding scams and fraudulent projects.
Ultimately, education and due diligence are key to successfully investing in cryptocurrency while mitigating risks. Investors should exercise caution, #ThinkBeforeTheyInvest in new or unknown cryptocurrencies, and thoroughly research any potential investments before committing funds. It is also important to be aware of common cryptocurrency scams and frauds, such as phishing attacks and Ponzi schemes, and to take steps to protect against them.
Furthermore, we launch a $1 million bug bounty program, the biggest bounty reward among crypto exchanges, to further strengthen the security of the platform and protect users’ funds. The bug bounty program will reward security researchers for discovering and responsibly disclosing vulnerabilities on the KuCoin platform, with rewards ranging from $50 to $1,000,000 per bug depending on the severity of each vulnerability. In addition to the bug bounty program, KuCoin has launched a new security page to showcase its strong commitment to providing a safe and secure trading platform for its users, featuring an array of advanced security measures designed to protect users’ assets and personal information. The initiative comes after KuCoin’s previous bug bounty program in July 2022, which offered a reward of $5,000 per reported bug.
What advice would you offer to someone who is just getting started in the world of cryptocurrency trading and investing?
If you’re just getting started in the world of cryptocurrency trading and investing, there are a few things you should keep in mind to help you navigate the market successfully.
- Firstly, it’s important to do your research and educate yourself about the cryptocurrency market. Learn about the different types of digital assets, how they work, and the underlying technology behind them. This will help you understand the potential risks and opportunities associated with cryptocurrency investing and trading.
- Secondly, start small and invest only what you can afford to lose. The cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Diversifying your portfolio across different cryptocurrencies and asset classes can also help you manage risk.
- Thirdly, choose a reputable and secure exchange or trading platform to buy and sell cryptocurrencies. Ensure the platform has adequate security measures in place, such as two-factor authentication and cold storage for customer funds.
- Finally, keep up to date with the latest developments in the cryptocurrency market, including regulatory changes and new project launches. This will help you make informed decisions about your investments and identify potential opportunities for growth.
At KuCoin, we believe in empowering our users with the knowledge and tools they need to succeed in the cryptocurrency market. We offer a range of resources, including educational articles and tutorials, to help new traders and investors get started. We also have a 24/7 customer support team available to assist with any questions or issues. By following these tips and taking advantage of the resources available, you can approach cryptocurrency trading and investing with confidence and make informed decisions to grow your portfolio over time.