The Seychelles-based cryptocurrency exchange platform KuCoin has seen its valuation surge, following its first financing round in four years. The company’s chiefs are hoping to push the company’s web3 ecosystem further, as well as expand its current operations.
The funding round saw the company raise $150 million in a pre-Series B financing round, which was led by Jump Crypto and included various firms such as Circle Ventures, IDG Capital, and Matrix Partners.
The New Valuation
In a recent interview with TechCrunch, KuCoin chief executive Johnny Lyu revealed that the company is now valued at around $10 billion after the latest round of funding, up from $100 million. The last Series A funding round was valued at $20 million back in November 2018.
The platform commands 18 million users in 200 countries across the globe and is one of the largest exchanges in the industry—leaders in terms of daily spot trading volume. The new investment will help the company to expand its reach into areas of portfolios and crypto wallets, GameFi, DeFi, DAOs, and NFT platforms.
KuCoin executive Lyu went on to say “This is how everyone is brought into the ecosystem, and the value of the ecosystem, in turn, depends on the size and loyalty of these participants,” adding that “This concept is essentially why we raised this round, web3 is about openness, and we want to build KuCoin into an open ecosystem and an open system needs to bring many friends on board. The world of crypto is so new that we want to make sure we can leverage all sources of information to guide our decision-making, and these prominent investors can keep us updated on the latest trends.”
What Makes KuCoin So Popular?
KuCoin has a huge customer base, which is largely due to the reputation it has built for itself in recent years. But, not just for being a quality exchange, KuCoin has gained infamy for listing tokens with small to midsized market cap.
With the market highly saturated, the big wins are made on coins of this size. As such, in the past few years, KuCoin has seen an influx of new investors looking to make a quick fortune on the platform. On top of that, KuCoin also offers short and long positions on various digital assets.
The company is focused on the decentralized community and hopes that its DEX will be the future of the company, as it appeals to the wider crypto native ecosystem.