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With a transaction volume of $4.3 billion and a mammoth user-base, KuCoin Spotlight is one of the leading cryptocurrency exchanges to launch a new crypto/blockchain project.
Enthusiasts looking forward to getting a secured early bird entry to young projects should consider KuCoin Spotlight as their go-to platform. KuCoin exchange critically examines its applicants before listing them on the platform and offers a number of benefits to holders of its native token, KCS.
About KuCoin Exchange
Rated 4.1 on Forbes’ list of best crypto exchanges, KuCoin EXCHANGE is a global cryptocurrency exchange with more than 8 million active users, ranking fifth on CoinMarketCap. Housing above 400 digital assets and above 700 trading pairs, KuCoin crypto exchange offers an exclusive range of small market-cap coins with high growth potential that traders won’t find elsewhere.
Currently, 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.
Understanding KuCoin Exchange’s IEO
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Kucoin Spotlight is like an ICO but on an exchange, so it’s called an IEO or an Initial Exchange Offering. Before delving deeper into the crux of an IEO, it’s imperative to understand the other two categories of an initial offering popular in the cryptoverse: ICO’s and IDO’s.
What is an ICO?
ICO is when a user can invest in a crypto-project early on, but it’s incredibly risky. ICOs faced many problems because they would go straight to the buyers’ wallets. Seldom they would have the support of exchanges. So they couldn’t be traded further and lost their utility eventually.
ICO’s evolved into IDO’s, or initial DEX (decentralized exchange) offering. If a new DeFi project appears on Uniswap, Sushiswap, or any of the decentralized exchanges and offers up their tokens there, it is essentially called an IDO.
This could be equally risky as a lot of projects get randomly listed on Pancakeswap (one of the largest decentralized exchanges) without much vetting going behind because, well, decentralized means absence of a regulatory body. Even if these coins get listed to be traded they might ultimately turn out to be illegitimate since no one’s there to vet these coins.
What is an IEO?
An IEO, on the other hand, requires the projects that want to get listed submit their KYC details. It involves meticulous background checks on the project that has applied to be listed.
How to Invest in a New Token using KuCoin Exchange?
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KuCoin Spotlight is the dedicated launchpad that lists new projects and tokens from time to time. However, it is not something that US-based citizens can take advantage of since participating in IEO’s is banned in the US. Also, users would need to complete their KYC in order to invest through KuCoin Spotlight.
KuCoin exchange allows payments to be made through its native token, KCS only. So, participants would have to have the amount of KCS that would be required to place the order for buying a new token in their trading account. Getting allocation on a new project is again not so easy in the case of an IEO. If a user secures a place among the initial buyers’ list, KuCoin cryptocurrency exchange withdraws the fund from their account.
Spotlights In Progress
CRYOWAR and IX Swap are two projects with their initial token offering going on on KuCoin exchange. Cryowar is a Player-vs-Player arena-based NFT game built on the Solana blockchain network. Set in a GOTesque medieval world, this game, as you have already assumed, is about world dominion, protecting one’s territories, and accumulating rewards in the process. Like all things NFTs, the worth of CRYOWAR’s tokens is directly related to the reaction of the gaming community regarding its collectibles.
IX Swap is another project dubbed as the world’s first liquidity and automated market maker for security tokens and tokenized stocks. Check out the details of these two projects’ token sale here.
Conclusion
KuCoin exchange includes in its vetting process factors like finding out and verifying the use cases of the project, the social sentiments around the project, compliance checks, etc. Another advantage of buying a coin through an IEO on KuCoin is that these coins get listed on the exchange to be traded as soon as the initial sale is over with the initial buyers creating liquidity for the token.
One of the drawbacks of an IEO is that an exchange has a huge user base and a limited amount of tokens that are available. That is why exchanges like KuCoin that launch new projects may limit the amount of price payable per person to buy a new token. Some crypto experts will call it a boon rather than a drawback though, since setting a limit on how many tokens a person can accumulate mitigates whaling activities.
With KuCoin exchange users can rest assured that their tokens would not get lost in the sea oblivion like it happens with ICOs and IDOs. However, it is important to self-evaluate the project, read their whitepapers and engage with the existing community before jumping on something new.
Recently KuCoin Exchange partnered with Blockwiz, a Web3 marketing Agency that provides integrated cryptocurrency marketing solutions across crypto influencers, PR, SEO, and social media; in an effort to strengthen online communities and meet their business objectives. So, willing to be a part of the crypto revolution? Feel free to check the KuCoin exchange community on Twitter, Telegram, and other social channels for more information!