Cryptocurrency exchanges are critical components of the cryptocurrency ecosystem. The people who run them become influencers to varying degrees, often depending on the size of their exchanges.
According to a recent report, the KuCoin exchange ranks among the top five exchanges on Coinmarketcap. Furthermore, the number of users has increased to 8 million by 2021.
KuCoin was founded in September 2017 and has been led by Johnny Lyu since May 2020. If you search for “CEO KuCoin,” you will find a young man with a Hollywood-style smile.
It is difficult to reconcile his outward appearance with a managerial position in one of the leading cryptocurrency exchanges at first.
However, if you’ve seen even one of Lyu’s AMA sessions, you already know how financially and technically savvy he is.
Cryptocurrencies in the tumultuous 2020s
JM (Julia Magas): Everyone has noticed that the last few years have been unusual. The world has been through a lot. I’m referring to the pandemic, social distancing, teleworking, rising prices, inflation, the space race, and a slew of other positive and negative events that have occurred in the last two years. What was the state of blockchain and cryptocurrencies at the time?
JL (Johnny Lyu): Everyone will probably agree that it was a good time. We witnessed the heyday of DeFi and NFT, the emergence of metaverses, the growth of the market, and the updating of price maxima by many currencies, institutional investments in cryptocurrencies, and so on. Most importantly, the so-called “cryptocurrency renaissance” is still gaining traction. I see no reason to believe any pessimistic predictions.
The Renaissance of Cryptocurrency
JM: A cryptocurrency renaissance? That’s an interesting way of looking at it. What exactly do you mean?
JL: The events surrounding the overall popularization of cryptocurrencies and blockchain technologies are diametrically opposed to previous events. I’m talking about Mt.Gox and Silk Road in 2013/14, the ICO crash in 2017/18, and everything else that contributed to the period of stagnation in 2018 and 2019.
Together with John McAfee, it appears to me that an era has passed. We are currently experiencing a renaissance. That era has given way to another, in which large corporations buy cryptocurrencies for billions of dollars and people like Elon Musk are elevated to the status of the most powerful influencers.
Everything that happened on the cryptocurrency market in 2020/21, from parachute money and the subsequent increase in the number of deposits in the Coinbase IPO, to the twentyfold increase in the price of bitcoin compared to its values in 2019, all of these events started a very important process for the market. That is progress, and it is resulting in an increase in the number of market participants. The market will expand and evolve. There is no doubt about it.
KuCoin is growing in tandem with other cryptocurrencies.
JM: Yes, the popularity of cryptocurrencies and the adoption of blockchain technologies has been skyrocketing recently. The number of thematic Google searches, wallets, and people who own them, or are interested in and use cryptocurrencies on a daily basis, is rapidly increasing. According to a KuCoin report for the second quarter of 2021, the exchange has 8 million new users. What do you make of such a figure?
JL: The number of new users on the exchange is one of the indicators of the market’s overall success, as people from various countries register on the exchange to purchase their first cryptocurrencies.
KuCoin has always been committed to the development of the crypto ecosystem in order to provide our users with a variety of services in a single circle. We recently welcomed a new member to the KuCoin Family, the KuCoin Pool, with the goal of bringing efficient mining and lower fees to miners worldwide.
After connecting mining rigs, the proof of work mining pool will provide mining revenue to global cryptocurrency miners. It also showed that we are getting closer to perfecting the entire ecosystem.
This, along with other statistics such as the number of mobile users and female traders, show how quickly the cryptocurrency market is growing this year.
Women are increasingly entering the crypto world.
JM: Everyone can see why the number of mobile users is increasing. What do you attribute the increase in the number of female traders to?
JL: I’ve always believed that women are more prudent. If women are investing in cryptocurrencies at a higher rate than in the past, bitcoin will soon skyrocket!
But, seriously, I’m not sure why the industry evolved in such a way that it was initially more inclusive of men. However, I am relieved that things are changing. Many women work in KuCoin in a variety of capacities, and I asked their thoughts on why the number of women among our users has increased dramatically this year. And do you know what they said? That the market is gradually developing and forming, and that certain values must be attained.
You must first ask some questions and then draw some conclusions. Our team is confident that, in the end, the ratio of men, women, and transgender people among cryptocurrency users will be the same as the global ratio. That is something I agree with.
I’m looking forward to seeing more cryptocurrency adoption.
JM: I understand, of course. It appears to be very logical! Do you and your team believe that in the future, everyone will use cryptocurrencies in the same way that they use fiat currency now?
JL: You know, back in 2011, I thought blockchain technology was very similar to the internet at the turn of the twentieth century. I saw the possibilities and realized that blockchain is the future technology on which Web 3.0 will be built, and that cryptocurrencies are, at the very least, the new digital gold.
Over the last ten years, I have not changed my mind on the subject. Many people already use cryptocurrencies on a daily basis. It can be difficult to pass judgment on the subject if a cup of coffee is not yet being sold for cryptocurrencies at your local café, despite the fact that a bank is just around the corner and several banking apps are installed on your smartphone.
In other words, cryptocurrencies are already replacing money in many areas where banking services are limited. As stated in our company vision, we at KuCoin believe that one day, everyone will be interested in cryptocurrency.
Africa as a potential crypto hub
JM: Okay, which regions without adequate bank coverage do you believe will be the most promising for cryptocurrency market development and adoption in the coming years?
JL: There are still many people in the world who do not have access to banking services. They made up about 22.7 percent of the world’s population four years ago. Since then, the situation has improved, but the issue has not been fully resolved. In some areas, accessing the internet and using cryptocurrencies is easier than opening a bank account. Latin American, Asian, and African countries are among them.
In the coming years, African countries will, in my opinion, comprise the top ten most active market participants. These countries have all of the prerequisites and experience necessary to avoid repeating the mistakes that have plagued the market over the last ten years and making the same mistakes that we are witnessing now.
JM: Which errors are you referring to?
JL: In Western society, there is still a persistent and deeply ingrained belief that cryptocurrencies are only used for criminal purposes. As a result, there is excessive market regulation and a never-ending stream of bans. Mt.Gox, Silk Road, One Coin, Bitconnect, and the rest of their illustrious ilk are all on display.
After studying these examples, one can see how not to build a business. Instead of a total ban to keep the banking system at the level of the early 2000s, the use of cryptocurrencies and their integration into the global economy provides a chance for such countries to quickly become financially sound and reliable.
Portfolio of Lyu
JM: Johnny, you are the CEO of one of the most important cryptocurrency exchanges. I can’t help but ask you because the answer will be very interesting to our readers. Do you have any personal experience with cryptocurrencies? Which project’s tokens do you trust?
JL: Of course, I invest in cryptocurrencies, and I believe that cryptocurrencies should be part of the portfolio of anyone who invests and is concerned about their future. I rarely give financial advice because I am more of a holder than a trader. The majority of my holdings are in BTC and our native token KCS, but I also keep an eye on the trending categories.
There is no point in concentrating on a single project. Instead, one should concentrate on economic sectors and industries. I’m a big fan of parachains, cross-chains, metaverses, and other projects that are pushing the world closer to Web 3.0. I have to admit that I purchased DOGE. It was difficult to say no, but it is the only meme token in my portfolio.