One of the biggest Wall Street trading firms, Susquehanna International Group, awards funding to Kucoin
On Thursday, cryptocurrency exchange Kucoin said that it has received $10 million from Susquehanna International Group, one of the biggest trading companies on Wall Street and a company co-founded by American billionaire Jeff Yass. The investment extends the $150 million fundraising round for Kucoin that was first disclosed in May and was headed by Jump Crypto, a supporter of the troubled Terra blockchain. Significantly, Kucoin said the Susquehanna investment was at the same $10 billion value as the business stated in May, while some other cryptocurrency companies have recently seen their valuations reduced in funding rounds.
According to a statement from the company, the additional funds will be utilized to improve the trading platform for Kucoin, extend its product line, and do business internationally. The strategy for Kucoin calls for using a portion of the funding to expand its 1,000-person workforce by another 300 employees. Together with Susquehanna, it will also develop an incubator program to help other cryptocurrency firms, especially those with works based on Kucoin’s blockchain.
The additional funding would enable KuCoin to move beyond centralized trading services and increase its footprint in Web3, according to co-founder and CEO Johnny Lyu. In addition to enabling them to effectively handle the industry downturn, this capital will also prepare them for a protracted bear market. The company, which competes with companies like Binance, Coinbase, FTX, and Crypto.com, has been looking into prospects in the web3 ecosystem for some time. Late last year, it unveiled KuCoin Ventures, its investment division, through which it makes both financial and strategic investments. Terra’s $60 billion collapse set off the recent crypto crash, which has now sparked a credit crisis akin to the devastation that destroyed the traditional financial sector in 2008. On Thursday, Zipmex became the newest cryptocurrency company to temporarily halt withdrawals as a consequence of “resulting financial challenges” with some of its major trading partners. The action was made in response to the bankruptcy of Singapore-based cryptocurrency hedge fund Three Arrows Capital, which has left its creditors, such as Celsius Network and Voyager Digital, severely hurt. Seychelles-based companyKucoin in an earlier statement stressed that it had no connection to Three Arrows Capital or the defunct cryptocurrency token that powered the Terra blockchain and denied allegations that it planned to stop accepting withdrawals. According to the exchange, commerce is still expanding. Just last week, Kucoin said that its platform now has more than 20 million users from 207 different countries and regions and that the trade volume in the first six months was more than $2 trillion despite the market downturn. The current market condition is not difficult for the company because its long-term strategy assumes unfavorable market scenarios, according to Lyu. They are somewhat prepared for several scenarios in addition to the crypto winter. Using several variables, including global geopolitics and monetary measures that assist contain inflation, the CEO predicted a market rebound no earlier than 2023. Due to its reputation for listing tokens with modest to mid-sized market caps, KuCoin has grown in prominence. One of the common ways knowledgeable traders made significant money in the past was by placing large bets on the new KuCoin that was due to list and then selling them as soon as trading began on the main exchange. The company claimed that although demand for centralized services has grown over time, it is committed to providing consumers with access to some decentralized services as well. Kucoin was established in Singapore five years ago and has since grown to include NFT trading, crypto financing, and an investment vehicle that specializes in blockchain and cryptocurrency companies. According to tracker Coingecko, Kucoin has developed into one of the top 10 largest cryptocurrency exchanges with $1.3 billion in spot deals during a 24-hour period as of Thursday.