Crypto exchange KuCoin’s recent report titled “Into the cryptoverse India” reveals that its users come from Southeast Asian countries, particularly India. More than 5.6 million new users come from the country.
In a conversation with The story decipheredJohnny Lyu, CEO of KuCoin, talks about the Southeast Asian market and KuCoin’s strategies for emerging economies including India.
According to Johnny, Southeast Asia has “an attractive web3 talent pool and is one of the fastest growing markets in the blockchain space.” “These marketplaces use technology to build tools and businesses that address complex issues,” he says.
Apart from Southeast Asia, KuCoin has also seen an influx of its user base from Latin America, Africa, the Middle East, and Europe. “Africa has seen good adoption in terms of crypto,” says KuCoin CEO.
Strategies for emerging markets
Johnny believes that understanding the needs of different regions, their financial infrastructure, cultural differences and business preferences is essential for the business. Therefore, it adopts strategies to focus on these areas.
“Trading communities are more active in emerging markets than in developed markets, and cryptocurrencies are widely used in these developing economies. Projects in emerging markets would fare better if they targeted local merchants,” says Johnny.
Johnny says that despite greater crypto adoption, users in emerging markets lack the tools, infrastructure, and financial access to engage in crypto trading.
The exchange intends to provide infrastructure tools to help users in these markets. It currently offers a trading bot that allows users to set certain conditions under which the bot will execute the trade.
“Our KuCoin trading bot is free software that traders can use to automate their crypto trading. We have examples of several users who have earned a stable source of passive income in these countries using the KuCoin trading bot at no cost” , explains Johnny.
According to him, the glocal strategy will be one of the priorities of the company. “Hiring local employees to serve local customers could help accelerate this strategy,” he says.
In addition to its glocal strategy, the company is also investing in user training. To help foster safe crypto trading practices, KuCoin has launched a #ThinkBeforeYouInvest campaign. “This aims to share basic information for our users to better understand queries related to investor protection,” says Johnny.
KuCoin bets big on India
The CEO of KuCoin considers India as one of the key markets and claims that a significant portion of its users are Indians. Hence, the scholarship extends its support to Indian startups.
Earlier this year, KuCoin launched a $50 million support package to help develop India’s blockchain industry.
“We have built local communities across India, hired locals and we are actively collaborating with regional crypto companies like Bitbns, on various projects. India clearly has huge potential to lead the cryptocurrency and blockchain industries as a booming market.
To strengthen India’s Web3 ecosystem, the firm intends to fund initiatives such as incubation, hackathons and consulting.
Regarding the future potential of the Indian market, Johnny says, “The rise of venture capital investment and distributed ledger technology will be the major drivers of market growth. Therefore, for continued growth, crypto exchanges and lenders must focus on user satisfaction, as the adoption of cryptocurrencies depends on the fundamentals of transparency and accountability.
Johnny sees a trend unique to India. He points out that on-chain crypto activity is higher in India and the popularity of crypto has grown in the country. “Users’ shift in perspective towards investing in crypto is visible.”
According to the KuCoin report, 59% of Indian crypto users know which investment products are right for them, and 63% of users know how to manage risk in their portfolio.
KuCoin is currently ranked fifth on CoinMarketCap’s crypto exchange rankings, behind Binance, Coinbase, FTX, and Kraken. The Singapore-based crypto exchange hit 10 million users in December. It records a daily trading volume of more than $3 billion, according to data from CoinGecko, a cryptocurrency data aggregator.
Although Coinbase, FTX and Binnace frequently make headlines, Johnny doesn’t see them as competitors because the exchange, he says, focuses on its user base rather than other exchanges.
“We have our differentiation and specific user groups. As one of the most emerging and developing industries, the crypto market is very diverse and extensive. Although there will inevitably be some competitiveness between each other, I think the most important thing is that each of us contributes to this growing industry through our own efforts and brings value to customers with the belief of ‘accelerating crypto development, building consensus and ultimately pushing crypto investments from the geeks to the masses,’ he says.
Johnny admits that creating a secure trading exchange comes with its own set of challenges and the only way to overcome them is to work harder.
“We are working to build an equal and safe trading market in today’s difficult geopolitical atmosphere, paying little attention to our position in ratings and listings. Now we have to work even harder. Our crypto experts are developing a flexible strategy that takes into account the current situation (the current bear market) and will allow us to move forward and maintain our reputation as a people exchange, considering that the environment operational and related regulations change every day,” he says.