Kucoin crypto exchange has announced that it is making a debut into the Non-fungible token (NFT) market through Pool-X, the exchange’s liquidity trading platform. According to the announcement, Kucoin will roll out its NFT exchange within the next few months. Meanwhile, the exchange has already opened an NFT deposit service through Dego.Finance NFT assets.
NFT’s gained momentum in the crypto space this year and almost picked up from where the DeFi bull-run topped. Well, it appears that these digital assets could actually cause another market hype, given their value proposition. Basically, NFTs can be leveraged in different industries to store value on a decentralized/blockchain ecosystem. Some of the most compatible niches include artwork, collectibles, and Gamefi.
Kucoin will be among the pioneer centralized crypto exchanges to feature NFT trading; a milestone that the firm touted in the announcement,
“KuCoin’s support on deposit and withdrawal of NFT assets indicates that NFTs will soon enter the centralized trading platform for circulation.
At present, trading NFT assets is difficult for users because many of them are unfamiliar with on-chain transactions.”
Notably, Kucoin opened NFT deposit services on Nov 16 as withdrawals are scheduled to commence on Nov 20. Plans to launch the NFT exchange and NFT trading service have been set for early next year. According to Kucoin’s CEO, Johnny Lyu, the firm has been paying close attention to NFTs despite minimal action at the moment,
“KuCoin is paying close attention to the NFT market. Although NFTs don’t have enough market attention at present, the potential is great.
Moreover, it has many application scenarios in insurance, bonds, options, and other fields. It can even create a virtual real world on the blockchain.”
He highlighted that Kucoin launched the NFT trading board to increase market participation, noting that the exchange will continue to contribute to the NFT space. Stats from NonFungible.com, an NFT data analysis platform, revealed that this space grew by 300% year-on-year to record $230 million in transaction volumes during the first half of 2020.
Kucoin is still recovering from a $280 million hack at the end of September. So far they have recovered close to 84% of the stolen funds, in which they believe they know who the hackers are and are working with local law enforcement to trace and arrest the attacker.