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Number of Africa-Based Users on Kucoin Platform Surges by 200% in First 10 Months of 2021

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Number of Africa-Based Users on Kucoin Platform Surges by 200% in First 10 Months of 2021

Despite largely lagging behind the rest of the world on many other metrics, Africa however appears to have kicked things into high gear where cryptocurrency and blockchain are concerned.

Africa-Based Kucoin Users Skyrocket in 2021

In African countries that are plagued by currency woes or hyperinflation, cryptocurrencies have emerged as a genuine alternative store of value. The same digital currencies are also increasingly becoming the preferred means of sending remittances or for making cross-border payments.

In other words, cryptocurrencies have real uses in Africa besides trading. However, as Johny Lyu, the CEO of Kucoin — one of the biggest crypto exchanges in the world — observes, many African cryptocurrency users or holders are starting to become more interested in the trading side of things.

In fact, in his written responses to questions that were sent to him via Linkedin, Lyu reveals that more African users are venturing into futures or margin trading. The CEO also explains how his organization is preparing itself for what some see as a future trillion-dollar industry.

Below are some of Lyu responses to the questions that were posed to him by Bitcoin.com News.

Bitcoin.com News (BCN): What did African users buy most this year?

Johnny Lyu (JL): BTC, ETH, SOL, KDA, and LUNA are projects that most African users keep their eyes on. With the rise of NFT, Gamefi and Metaverse, native tokens of these sector-related projects have also been listed on the portfolio of African users, such as BLOK, DREAMS, etc. In addition, under the influence of market sentiment, meme coins such as DOGE, SHIB and ELON have also attracted the attention of African investors.

BCN: What does this traffic mean?

JL: In addition to the increase in traffic, the number of Kucoin’s new African users has also shown explosive growth, showing a new wave of traditional capital pouring into the crypto world. The level of acceptance of blockchain and cryptocurrency in Africa is increasing, which also indicates the accelerating development of the crypto industry. Blockchain might be the next big thing after the Internet, and all the countries are at the same starting line, therefore we believe that blockchain can be a chance for developing countries to catch up with their developed counterparts.

BCN: How has the number of users and trading volumes changed?

JL: Both the number of African users and the trading volume on the Kucoin platform have increased each month since the start of 2021. The trading volume calculated for October 2021 increased by 74% compared with the previous month, and the number of newly registered users increased by over 200%. So far, the exchange has maintained the same growth rate.

BCN: Which products are used the most in Africa?

JL: The majority of African users are using spot trading now. In November 2021, the volume of spot trading is taking the leading with 60% amongst all trading products. But we have seen a growing interest in margin trading, which reported a 143% increase in October 2021 when compared to the previous month.

BCN: On a different note, Kucoin Labs, an investment arm of Kucoin, recently launched a $100 million fund to support metaverse projects. Can you tell us why your organization has made such a big step this early?

JL: As the “home of altcoins and crypto gems,” Kucoin has always been highly sensitive to the latest trends in the market. Metaverse is the next chapter of the Internet, and we believe it will change many aspects of our society. Our mission is to help projects that are starting to enter the metaverse segment and introduce them to our users. We will identify projects that are actually developing and reject the ones that are just riding on the wave of hype. It is important to start doing this now at the stage of market formation.

Sometimes, projects that are worthy from a technological standpoint are overshadowed by weaker ones due to a lack of marketing budgets, insufficient media coverage, and community support in the face of obscurity. Some other startups with similar ideas may have the upper hand in either technologies or marketing. Oftentimes, a startup with strong marketing efforts and no technological footing will drive a technologically superior competitor off the market. This leads to a dangerous situation much like the one witnessed back in 2017-18 when many ICO projects turned out to be scams. Kucoin Labs will certainly contribute to the formation of a healthy market by supporting technological competence and innovation.

BCN: According to a report, part of the money for this metaverse fund is earmarked for education programs. Are you in a position to tell us the amount that will go towards this?

JL: Grants to technologically strong projects are not the only article of our expenses. Training young professionals are very important for a rapidly growing and high-tech industry like blockchain. We did not include any specific numbers in the release, because it would be wrong to do so since we are ready to spend as much as necessary on the educational component. You can’t just say, “okay, let’s spend ten million dollars on a hackathon!” Learning is an ongoing process, while a development grant has a limit.

We are ready to invest a lot in the training of young talent, but we do not know how many of them there are out there, and that determines the cost of the training. There is enough room in Kucoin Labs’ educational programs for everyone, and we will not behave like universities, which sometimes have a limited number of vacancies for applicants.

BCN: Besides the educational programs, what else should be done in order to get as many people on board with metaverse as possible?

JL: The industry needs people with passion, the brains and the willingness to work hard. I know many people like that in the crypto industry among my friends, colleagues and partners. They will create products that will attract users on their own without any additional incentives.

What are your thoughts about this interview? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

Some investors reacted angrily after PlanB admitted that his model failed to accurately predict the price of bitcoin (BTC) for November.

The popular crypto analyst aimed for a $98,000 BTC price for the end of this month. Just last week, he insisted the price target was still possible, even as markets declined.

PlanB correctly predicted BTC reaching $47,000 in August and $43,000 in September. He slightly missed the $63,000 target for October, but said the three percent “rounding error was close enough for me.”

Now the pseudonymous Dutch investor says that his $98,000 prediction for this month “will probably be a first miss,” according to a tweet posted on Nov 25. He did not give an exact reason for the failure.

“I see this miss as an outlier, a black swan, that has not occured in the data last 10 years,” he explained.

He spoke as the price of bitcoin tanked to $55,300 on Nov 23, down 20% from its record high of $69,000 reached on Nov 10. Some analysts are blaming the decline on fears of the impending Mt. Gox BTC repayments.

Bitcoin ‘stock-to-flow model still on track to $100,000’

PlanB, who claims 25 years of financial markets experience, is famed for creating the stock-to-flow (S2F) price prediction model. The model is based on the ratio of the current supply (stock) of an asset or commodity to its annual production (flow).

It can be applied to any asset with limited supply really, and the Dutch analyst did so with bitcoin in 2019. The idea is that since the bitcoin supply diminishes with every “halving” event every four years, it will create boom and bust cycles. He then uses these cycles to forecast prices.

PlanB explained that the missed November target relates only to the “floor model,” one of his three price prediction tools. Unlike the S2F, the so-called floor model relies on price and on-chain data, he says.

He insisted the stock-to-flow model had not been “affected and indeed [was] on track towards $100,000.”

Justin Stagner put the miss into perspective. “[It is] not like you just barely missed it either. I mean, its looking like you really blew this one,” he stated.

Mounting criticism

Some investors reacted angrily to PlanB’s admission of failure, blaming the crypto analyst for their financial losses.

“I used my student loans along with a short term loan using my house as collateral to go all in at $68k because you told me it would reach $98k. Now I’ll be homeless and without a degree…” complained Twitter user Brett Lethbridge.

Another lamented: “Now your stock-to-flow model is not reliable anymore. Most people incurred great losses because of your prediction.”

However, several other people replying defended PlanB, and even thanked him for his predictions. Often, they defaulted to a familiar refrain, a disclaimer of sorts, that his forecasts are “not financial advice. Do your own research.”

PlanB himself averred:

It is indeed absurd that when you publish information for free, somehow people make you responsible for their investment decisions and actions. Everybody is responsible for their own (investment) decisions and actions. Blaming others is a sign of immaturity: NGMI (not going to make it).

The Dutch analyst has faced criticism before. He’s often accused of adjusting his price predictions lower once it becomes clear that the S2F would miss its target, and be invalidated.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

After initiating a bounce on Nov 25, Bitcoin (BTC) decreased considerably the next day and is back at its weekly lows.

Since Nov 19, BTC had been hovering above the $56,500 support. This is both a horizontal support area and the 0.382 Fib retracement support level.

Yesterday, technical indicators started to show some bullish signs.

After 15 successive lower momentum bars, the MACD finally created one higher (green icon). This was a sign that the short-term trend is gradually picking steam. 

Furthermore, the RSI generated a bullish divergence (green line). This is a bullish occurrence in which a price decrease is not accompanied by the same increase in selling momentum.

However, BTC reversed its trend on Nov 26 and is in the process of creating a bearish engulfing candlestick (red icon). This is a type of bearish candlestick in which the entire previous day’s increase is negated the next day. There are still more than 15 hours until the daily close, but the start of the day looks extremely bearish.

If a breakdown were to occur, the next support area would be found at $53,250.

Short-term BTC movement

The six-hour chart shows that BTC has been decreasing under a descending resistance line since Nov 19. This is a sign that BTC is correcting.

Furthermore, BTC created a lower high relative to the price on Nov 20. This is considered a bearish sign since it didn’t have enough strength to reach its previous highs.

The even shorter-term two-hour chart shows that BTC is trading inside a symmetrical triangle and is very close to its support line, which coincides with the $56,500 horizontal support area. 

Therefore, a breakdown from it would likely accelerate the drop.

Wave count

The wave count suggests that BTC is in the C wave (red) of an A-B-C corrective structure. This means that after the correction is complete, the upward movement is expected to resume. 

The sub-wave count is shown in pink. It shows that BTC is in wave five of the correction, which is the final phase. 

There is a considerable Fib confluence between $53,250-$53,800, created by: 

  • Length of sub-wave one (pink)
  • External retracement of sub-wave four (white)
  • Length of wave A (red)

These levels also coincide with the long-term Fib support outlined in the first section. Therefore, BTC is expected to reach a low in this area before reversing.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

P2P crypto trading has hit a new all-time high in South Korea, data from LocalBitcoins shows. The jump in P2P trading comes at a time when there is a lot of uncertainty surrounding regulation in the country.

Peer-to-peer trading of cryptocurrencies in South Korea is hitting all-time highs as regulators offer some ambivalent comments on regulation. Data from LocalBitcoins shows that over 353 million in Korean Won was traded in the first week of November. This is a significant jump from previous weekly volumes.

South Korean P2P trading volume: Coin Dance

Pondering crypto tax

The increased interest in P2P trading comes as regulators are working on implementing a regulatory framework. South Korea, already one of the leading governments when it comes to cryptocurrency market regulation, is doubling down on its bid to prevent any illicit activity.

The high P2P volume may be a result of investors seeking to make the most of their capital as regulators bear down. Recent reports have indicated that there is some confusion among investors because of the lack of clarity surrounding regulation.

One of the primary issues is the implementation of crypto taxation. South Korea officials announced that it would tax the asset class, to the tune of 20%.

But lately, reports have suggested that there could be a change or complete repeal to this taxation scheme. The taxation law will come into effect in 2022, though it remains unclear about what specific form it will take.

NFT regulation is also throwing more confusion into the mix, as the Financial Services Commission (FSC) said in early November that it would not subject the special asset to taxation. However, later, the Vice Chairman of the organization said that tax provisions would be made for NFTs.

Uncertainty still looms

At the moment, it’s uncertain exactly what the regulatory landscape in South Korea will look like, given the lack of conclusion so far. The South Korean opposition party challenged the taxation scheme and pushed for a delay to 2023, demanding a more generous tax plan.

Exchanges are one of the major elements of the industry under the microscope, with 2021 seeing the first regulatory compliance certifications being sent to them. Several exchanges have had to shut down following regulatory scrutiny.

As it stands, it’s unclear what the specifics of crypto regulation will be. However, it’s almost certain that there will be a framework implemented, and whether or not it is stricter than investors like remains to be seen.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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