Despite largely lagging behind the rest of the world on many other metrics, Africa however appears to have taken the lead where cryptocurrency or the blockchain is 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 202. 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.