Reallearncrypto.com This is my Reallearncrypto blog
With a transaction volume of $4.3 billion and a huge user base, KuCoin Spotlight is one of the leading cryptocurrency exchanges launching a new crypto/blockchain project.
Enthusiasts looking forward to getting secured early bird access to fledgling projects should consider KuCoin Spotlight as their entry platform. The KuCoin exchange critically reviews its applicants before listing them on the platform and offers a number of benefits to holders of its native token, KCS.
About KuCoin Exchange
Ranked 4.1 on the Forbes list of the best crypto exchanges, KuCoin EXCHANGE is a global cryptocurrency exchange with more than 8 million active users, ranking fifth on CoinMarketCap. With over 400 digital assets and over 700 trading pairs, the KuCoin crypto exchange offers an exclusive selection of small market cap coins with high growth potential that traders will not find anywhere else.
Currently, the KuCoin exchange offers spot trading, margin trading, P2P fiat trading, futures trading, staking, and lending, among others. Let’s try to understand what makes the KuCoin Spotlight an ideal platform for new tokens.
Understand the KuCoin Exchange IEO
Photo by Executium on Unsplash
Kucoin Spotlight is like an ICO but on an exchange, hence it is called an IEO or Initial Exchange Offering. Before delving deeper into the core of an IEO, it’s imperative to understand the other two categories of an initial offering that are popular in the cryptoverse: ICOs and IDOs.
What is an ICO?
ICO is when a user can invest in a crypto project early on, but it is incredibly risky. ICOs faced many problems because they went straight into buyers’ wallets. Rarely have they had the support of exchanges. They could no longer be traded and eventually lost their usefulness.
ICOs evolved into IDOs or initial DEX (decentralized exchange) offerings. Essentially, when a new DeFi project appears on Uniswap, Sushiswap, or any of the decentralized exchanges and offers its tokens there, it is referred to as an IDO.
This could also be risky as many projects happen to be listed on Pancakeswap (one of the largest decentralized exchanges) without much scrutiny lagging behind as decentralized means there is no regulator. Even if these coins are listed for trading, they could ultimately turn out to be illegitimate as there is no one around to verify these coins.
What is an IEO?
An IEO, on the other hand, requires the projects that want to be listed to provide their KYC details. It includes thorough background checks of the project that applied for listing.
How to invest in a new token with KuCoin Exchange?
Photo by Executium on Unsplash
KuCoin Spotlight is the special launchpad that lists new projects and tokens from time to time. However, it is not something that US citizens can take advantage of as participating in IEOs is prohibited in the US. Also, users would need to complete their KYC to invest through KuCoin Spotlight.
The KuCoin exchange only allows payments via its native token, KCS. So, participants would need to have the amount of KCS that would be required to place the order to buy a new token on their trading account. With an IEO, on the other hand, it is not so easy to get an allocation for a new project. When a user secures a spot on the first-time buyers list, the KuCoin cryptocurrency exchange deducts the funds from their account.
Headlights in progress
CRYOWAR and IX Swap are two projects whose first token offering will be on the KuCoin exchange. Cryowar is a player vs player arena based NFT game built on the Solana blockchain network. As you might have guessed, this game, set in a gothic medieval world, is about world domination, protecting your territories and collecting rewards in the process. As with all NFTs, the value of CRYOWAR’s tokens is directly related to the gaming community’s response to their collectibles.
IX Swap is another project billed as the world’s first liquidity and automated market maker for security tokens and tokenized stocks. Check out the details of the token sale of these two projects here.
Conclusion
The KuCoin exchange includes factors like finding out and verifying the project’s use cases, social feelings surrounding the project, compliance checks, etc. in its verification process. Another benefit of buying a coin through an IEO on KuCoin is that these coins will be listed on the exchange to be traded once the initial sale is complete, with the initial buyers creating liquidity for the token.
One of the downsides of an IEO is that an exchange has a huge user base and a limited amount of tokens available. Because of this, exchanges like KuCoin that launch new projects may limit the price paid per person to buy a new token. However, some crypto experts will call it a boon rather than a disadvantage, as setting a limit on how many tokens a person can accumulate discourages whaling activity.
With the KuCoin exchange, users can be sure that their tokens will not be lost in the oblivion of the sea, as is the case with ICOs and IDOs. However, it is important to evaluate the project itself, read the white papers and engage with the existing community before embarking on anything new.
Recently, KuCoin Exchange has partnered with Blockwiz, a global crypto marketing agency offering integrated cryptocurrency marketing solutions for crypto influencers, PR, SEO and social media; in an effort to strengthen online communities and achieve their business goals. So, ready to be a part of the crypto revolution? Feel free to check out the KuCoin Exchange Community TwitterTelegram and other social channels for more information!
