CryptAutopsy had a lively chat with Johnny Lyu, the dynamic CEO of KuCoin, covering a wide array of subjects, from his role in the business to what sets KuCoin apart as a unique crypto exchange, his predictions on the future of cryptocurrency, and he even shared some nuggets of wisdom for rookies dipping their toes into crypto trading and investment.

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Could you paint us a picture of your background and how it led you to KuCoin?

As KuCoin’s captain, I take immense pride in helming a crew that’s unwaveringly dedicated to bringing digital assets within everyone’s reach. My voyage to KuCoin was charted by my extensive sojourns in the e-commerce, auto, and tech landscapes, which furnished me with a sturdy groundwork in business and operations. Nevertheless, it was my fervour for blockchain technology and its potential to revolutionize the financial system that guided me to KuCoin and its gifted founders.

When I first encountered the founding team, I was astounded by their steadfast belief in the revolutionary power of blockchain technology. They harboured a dream to conceive a global trading platform that would cater to all, irrespective of their educational background, employment status, or access to traditional banking. Their passion for democratizing finance was infectious, and I was instantly drawn to their mission.

Together, we birthed KuCoin, a platform that has since evolved into a leading exchange featuring over 700 tradeable assets and cutting-edge products like KuCoin 2.0, Spotlight, Futures, Earn, and Margin Trading. We’ve earned laurels and recognition from industry experts, including the prestigious Finder’s 2023 Global Cryptocurrency Trading Platform Awards, Forbes Advisor, and The Ascent. Our recent pre-Series B funding round steered by Jump Crypto, which valued KuCoin at a whopping $10 billion, is a testament to the platform’s success and potential for further growth.

But at KuCoin, we’re no fans of complacency. We’re perpetually seeking new ventures and pushing the frontiers of the crypto industry. We’re honoured to be trailblazers in decentralized finance and are committed to ushering crypto into the mainstream. Our mission is to foster a more inclusive financial system that caters to everyone, and I am proud to be a part of a team that’s turning this vision into reality.

What’s KuCoin’s secret sauce that sets it apart from other cryptocurrency exchanges in the market?

KuCoin is a cryptocurrency exchange that distinguishes itself from other exchanges in a couple of intriguing ways. First off, KuCoin dons the security cape, employing advanced encryption technology, two-factor authentication, and a multi-tier risk identification system to ensure the safety of users’ assets. Besides, KuCoin boasts a dedicated team that plays security guard round the clock.

Secondly, KuCoin’s “People’s Exchange” philosophy ensures that users always occupy the driver’s seat. The selective listing process involves rigorous due diligence and a meticulous review of every key aspect of a project before it graces the exchange. This ensures that users gain access to top-notch projects that have passed our stringent vetting process. Additionally, our monthly Proof of Reserves (PoR) programme offers users transparent and regular updates on KuCoin’s reserves to safeguard users’ assets. We’ve also put a $1 million bug bounty programme in place to further bolster the security of the platform and safeguard users’ funds.

KuCoin employs a unique Glocal strategy that gives it an edge over other exchanges. We’re establishing regional headquarters to cater to our users worldwide more effectively. These regional offices, nestled in major financial hubs, will allow KuCoin to grasp the local market pulse and requirements and deliver a more personalized service to its users.

KuCoin brings to the table a diverse range of services, including spot trading, margin

trading, futures trading, and staking. KuCoin also boasts its very own blockchain and has rolled out inventive products such as KuCoin 2.0, Spotlight, and Earn (formerly known as Pool-X). KuCoin Labs, the innovative arm of KuCoin, has floated a $50 million fund to back early-stage blockchain projects brimming with growth potential. This initiative underscores KuCoin’s commitment to nurturing innovation in the blockchain industry and providing its users with access to top-tier projects.

In essence, KuCoin’s devotion to security, user-centric approach, diverse range of services, and international presence through its Glocal strategy make it a solid and unique choice for cryptocurrency trading. Furthermore, initiatives such as the monthly PoR reports and bug bounty programme showcase KuCoin’s transparency and commitment to its users’ safety and security.

Could you give us a tour of KuCoin’s listing process for new cryptocurrencies and the criteria you utilize to assess potential listings?

As the People’s Exchange, KuCoin is very conscientious about the listing process and employs a selective approach to ensure our users gain access to quality projects. The listing process is a three-course meal: due diligence, agreement discussion, and listing preparation and integration.

During the appetizer – the due diligence stage, KuCoin’s professional team pores over all key aspects of the project, including the team, technology, community, market demand, and potential risks. This is to ensure the project is up to our standards and has a promising growth trajectory.

The main course – agreement discussions, involves a hearty conversation between KuCoin and the project team. This includes bargaining around fees, listing prerequisites, and other relevant details.

Finally, for dessert – during the listing preparation and integration stage, KuCoin gears up for the listing and integrates the project onto the exchange. This includes setting up trading pairs, ensuring the project is compatible with KuCoin’s security protocols, and conducting any necessary testing.

In terms of criteria used to evaluate potential listings, KuCoin considers factors such as the project’s technological innovation, market demand, team expertise, and community support. We also weigh the potential risks associated with the project and its overall fit with KuCoin’s vision and values.

In a nutshell, KuCoin’s listing process is highly selective and thorough, with a focus on ensuring our users gain access to quality projects that have been meticulously vetted.

How do you view the ascent of decentralized finance (DeFi) and non-fungible tokens (NFTs) influencing the broader cryptocurrency ecosystem?

he rise of decentralized finance (DeFi) and non-fungible tokens (NFTs) has triggered a seismic shift in the broader cryptocurrency ecosystem. DeFi has unlocked new avenues for investors by offering financial products and services that are accessible without a speck of red tape or identification requirements. With the total value locked (TVL) in DeFi protocols standing at a jaw-dropping $49.82 billion as of early March 2023, institutional investors are starting to sit up and take notice.

DeFi derivatives, which are smart contracts hosted on the blockchain, offer investors exposure to an asset’s value and the ability to hedge price risk without owning the asset, metamorphosing not just the derivatives market but the overall securities market as well. NFTs, on the flip side, have transformed the way digital assets are owned, bought, and sold. They have ushered in new opportunities for creators and collectors to monetize digital content, such as artwork, music, and other forms of digital media, by offering unique and tamper-proof digital assets stored on a blockchain.

This has made NFTs precious in various industries, including gaming, art, and sports, among others. Overall, the ascent of DeFi and NFTs has made the cryptocurrency ecosystem more diverse and inclusive, opening new opportunities for investors, creators, and collectors alike. The growth and investment in DeFi have been key game-changers in the digital asset market and crypto ecosystem, attracting keen interest from institutional investors. Simultaneously, the emergence of Web3 and its related technologies, such as NFTs, has cast a spotlight on crypto as a burgeoning asset class teeming with investment potential.

Could you delve into some of the primary risks associated with investing in cryptocurrency, and how investors can mitigate these risks?

Investing in cryptocurrency is akin to embarking on a daring adventure. It carries several risks, including security pitfalls, market volatility, regulatory uncertainties, and technical risks. To fend off security risks, investors should ensure they use exchanges and wallets with sterling reputations, and employ impregnable passwords and two-factor authentication. They should also be on high alert for phishing scams and other forms of social engineering attacks.

To weather market volatility, investors should resist the urge to put all their eggs in one basket and diversify their portfolio. They should also adopt a long-term investment strategy and not be swayed by short-term market fluctuations. Regulatory risks can be sidestepped by staying abreast of the legal landscape of cryptocurrency in their jurisdiction and being aware of any changes that may impact their investments. Technical risks can be tackled by staying informed about the underlying technology and potential vulnerabilities, as well as avoiding scams and fraudulent projects.

In the end, knowledge is power. Education and due diligence are key to successfully investing in cryptocurrency while mitigating risks. Investors should tread with caution, #ThinkBeforeTheyInvest in new or uncharted cryptocurrencies, and carry out thorough research on any potential investments before committing funds. It’s also vital to be aware of common cryptocurrency scams and frauds, such as phishing attacks and Ponzi schemes, and to take proactive steps to guard against them.

We’ve also launched a $1 million bug bounty program, the most generous reward among crypto exchanges, to further bolster the security of the platform and safeguard users’ funds. The bug bounty program will award security researchers for discovering and responsibly disclosing vulnerabilities on the KuCoin platform, with rewards ranging from $50 to a whopping $1,000,000 per bug, depending on the severity of each vulnerability. Besides the bug bounty program, KuCoin has unveiled a new security page to showcase its unflinching commitment to providing a safe and secure trading platform for its users, featuring a suite of advanced security measures designed to protect users’ assets and personal information. This initiative follows hot on the heels of KuCoin’s previous bug bounty program in July 2022, which offered a reward of $5,000 per reported bug.

What words of wisdom would you offer to a greenhorn venturing into the world of cryptocurrency trading and investing?

If you’re dipping your toes in the vast ocean of cryptocurrency trading and investing, here are a few pearls of wisdom to help you stay afloat and navigate the market successfully.

Firstly, make research your best friend. Acquaint yourself with the cryptocurrency market. Understand the different types of digital assets, how they work, and the technology that powers them. This will help you comprehend the potential risks and opportunities that come with cryptocurrency investing and trading.

Secondly, begin with baby steps and invest only what you can afford to lose. The cryptocurrency market is as unpredictable as the weather, and prices can go on a rollercoaster ride. Spreading your investments across different cryptocurrencies and asset classes can help you keep risk at bay.

Thirdly, choose a trustworthy and secure exchange or trading platform to buy and sell cryptocurrencies. Make sure the platform has robust security measures in place, such as two-factor authentication and cold storage for customer funds.

Finally, stay updated with the latest happenings in the cryptocurrency market, including regulatory changes and new project launches. Staying informed will empower you to make knowledgeable decisions about your investments and spot potential opportunities for growth.

Here at KuCoin, we strongly believe in equipping our users with the knowledge and tools they need to thrive in the cryptocurrency market. We offer a wealth of resources, including enlightening articles and tutorials, to help newcomers find their footing. We also have a dedicated customer support team, available round the clock, to assist with any questions or concerns. By heeding these tips and tapping into the resources at your disposal, you can venture into cryptocurrency trading and investing with confidence, making well-informed decisions that could grow your portfolio over time.

And if you’re still feeling a bit overwhelmed, remember, Rome wasn’t built in a day. It’s okay to take it slow and steady. The world of crypto isn’t going anywhere, so there’s no need to rush. Happy trading!

Before we wrap up, any fun facts or interesting tidbits about KuCoin you’d like to share?

Oh, where do I start! KuCoin is full of fun facts and interesting stories. For example, did you know that the first version of our platform was coded on a single laptop during a 72-hour coding marathon? Or that our team once consumed 200 cups of coffee in a single day?

We also have a tradition of ringing a bell in our office whenever a new coin is listed. It’s a small ritual, but one that brings us a lot of joy. But perhaps the most interesting fact about KuCoin is that we are a very diverse team. We have employees from over 20 countries, speaking more than 30 languages. We believe that this diversity is one of our greatest strengths and allows us to better serve our global user base.

Thank you for having me, Cryptautopsy. It’s been a pleasure sharing about KuCoin and our vision for the future. Here’s to a future where everyone has access to the financial opportunities offered by crypto!