KuCoin Plans to Launch Non-Fungible Token Exchange: Report

Seychelles-based cryptocurrency exchange, KuCoin has announced the upcoming launch of a non-fungible token (NFT) exchange. NFTs are unique, 'collectable' tokens that have use cases in areas that include 'artwork and GameFi'. According to an announcement published by KuCoin, the NFT exchange platform will be fully operational within “the next few months.”

“KuCoin's support on deposit and withdrawal of NFT assets indicates that NFTs will soon enter the centralized trading platform for circulation,” the announcement said.

Some of the features of the exchange will be available as early as November 16th: the announcement explained that this is when “the Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term trading platform Pool-X will open the deposit service of Dego.Finance NFT assets.”

KuCoin also said that the platform was built with the intention to “become an important channel for the popularization of NFT concepts and the improvement of NFT liquidity.”

The exchange’s Chief Executive, Johnny Lyu, said in a statement that KuCoin has its eye on the NFT market.

“Although NFTs don't have enough market attention at present, the potential is great,” he said. “Moreover, it has many application scenarios in insurance, bonds, options and other fields. It can even create a virtual real world on the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term.”

Could the NFT Space Be Poised for Growth?

Indeed, it seems as though KuCoin is attempting to establish itself as a sort of 'early mover' in the NFT space.

“As the first major crypto platform to support the deposit and withdrawal of NFT assets, KuCoin will continuously contribute to the NFT industry in the long term,” the announcement stated.

And there is evidence that the NFT space is growing, per the announcement, data from NnnFungible.com, NFT transaction volume saw 300% year-over-year increase through the first half of 2020, bringing the mid-year total to $230 million. Over the same time period, the number of active users in the space reached 78,881, an increase of 5.7%.

Finance Magnates reported earlier this year that KuCoin partnered with DigitalBits for the development of its enterprise currency desk (ECD). The ECD solution was described as 'a spin-off' from the traditional over-the-counter (OTC) desks and will cater to enterprise clients.