Nikolas Sargeant
KuCoin Labs, the venture arm of the KuCoin ecosystem, has officially announced its co-incubation with Republic Capital in BidShop.io, a startup offering additional liquidity streams for non-fungible tokens (NFT) holders.
The partnership will involve various enrichments to the traditional NFT auction process, including the use of game theory. These new measures will help to create additional liquidity streams above floor price for holders of NFTs.
An Innovative New Partnership
From the users’ point of view, the solution will allow bidders to acquire rare NFTs at a fraction of the price. This is achieved through an innovation process known as reverse auctions, putting more power into the hands of NFT owners and granting buyers better prospects of success when bidding.
The great thing about reverse auctions is that all bid values are encrypted and invisible to other bidders. Achieving this is a considerable challenge, especially when implementing encryption on EVM blockchain and keeping the process completely trustless.
This point was reiterated by Lou Yu, Head of KuCoin Labs, who had this to say on the deal: “The reason why we love BidShop.io is not only the unique technology but the true gamification of the NFT space, adding more liquidity and providing more people with a chance of acquiring NFTs with true value. KuCoin Labs is advising Bidshop.io from various aspects, such as business strategy, fundraising, marketing orientations as well as go-to-market strategies, etc.”
The hope is that the partnership doesn’t end there, with KuCoin Labs hoping to further explore collaborations with BidShop.io to improve the quality of the NFT ecosystem.
KuCoin Investments
KuCoin’s partnership with BidShop.io shows the company’s dedication to improving and advancing its technologies, specifically in the NFT space. However, KuCoin, like many other top-tier cryptocurrency exchanges, has been investing in the crypto space to improve its products and services.
In June this year, KuCoin Labs completed a strategic investment in Torches Finance, the decentralized lending protocol based on KuCoin Community Chain (KCC). The acquisition will help to integrate features such as lending, leveraged mining, and improving its NFT platform.
In March, KuCoin Labs announced a strategic partnership with MojitoSwap, the first decentralized exchange (DEX) on the KCC. The deal will support the comprehensive development of MojitoSwap in the KCC ecosystem, helping it to improve its products, operations, branding, and liquidity.
