Serious Altcoins 101: Kyber Network (KNC) Explained — AAX Academy
What if we said there is a way to instantly swap your tokens without leaving your favorite cryptocurrency wallet?
Meet Kyber Network, the crypto project that seeks to empower the blockchain industry with new (decentralized) use-cases.
In this article, you will learn what the Kyber Network is and how the project’s KNC tokens have been doing recently, while exploring the most important news about Kyber.
What Is the Kyber Network (KNC)?
The Kyber Network is an on-chain liquidity pool that features instant token swaps. To achieve instant exchanges between tokens, Kyber uses a wide variety of reserves where market markers provide a diverse range of digital assets.
A maker can be basically anyone, such as single token holders looking to make a profit on their coins, crypto projects seeking to list their digital assets, developers who are building new types of reserves, as well as professional market makers.
As the Kyber Network is using an open protocol for its blockchain solution, anyone is free to provide reserves for the project and use Kyber’s on-chain liquidity pools to power different decentralized applications (DApps).
But what does this mean in practice?
Let’s say that you are using a cryptocurrency wallet where you hold some ETH.
One day you find an interesting crypto project and decide to buy some of its tokens.
However — as the project’s coin has yet to achieve widespread popularity among cryptocurrency users –, you have to use the services of a small crypto-to-crypto exchange to convert your ETH into your digital asset of choice.
For this, you have to transfer your ETH to the exchange, convert the Ether into the project’s token, and send the coins back to your wallet.
This does not only come with multiple transactions — thus, increased costs –, but also takes more time until your coins are exchanged via this method.
However, you find out that your cryptocurrency wallet uses Kyber Network’s protocol, allowing you to swap your ETH to the project’s coin within a few seconds.
The main benefit of Kyber is that its protocol can be integrated with any decentralized application that uses the Ethereum network or another smart contract blockchain.
In addition to the example mentioned above, Kyber Network has multiple use-cases in the cryptocurrency industry, including accepting ecommerce payments in a preferred digital asset, providing liquidity to crypto exchanges, as well as powering the rapidly growing DeFi space.
What Is Happening With the KNC Price?
Now that you know the essentials about the project, let’s take a look at how KNC, Kyber Network’s native token, has been doing these days.
After securing $52 million in its September 2017 token sale, KNC entered into a sharp uptrend, growing its value from the initial price of $2.32 to $5.61 by January 9, 2018.
However, like with other tokens, KNC’s price was affected by 2018’s long-lasting bear market, which lowered the cryptocurrency’s value to $0.16 by the end of the year.
Apart from some minor bull and bear runs, the KNC price remained nearly unchanged during 2019, standing at $0.19 on December 31, 2019.
Despite the turmoil in the general market, Kyber Network is having an excellent year in 2020.
Starting the year with $0.19, the KNC price had continuously increased until March 11 when the market crash fueled a drop in the cryptocurrency’s value from $0.8 to $0.35 in two days.
KNC managed to recover fast, surging to $1.25 by June 13. The cryptocurrency currently trades at $1.20, which represents an ROI of 531% for 2020.
Kyber Network in the News
It’s safe to say that Kyber Network’s liquidity solution has achieved widespread popularity in the cryptocurrency industry.
As a result, Kyber has been featured recently in the news for securing partnerships with numerous crypto projects, such as Binance that integrated the liquidity protocol into its Trust Wallet last year.
However, the most important event in Kyber Network’s history is yet to come.
With its Katalyst protocol upgrade, Kyber is set to empower KNC with additional use-cases, provide more incentives and benefits to token holders, as well as introduce the KyberDAO. In this decentralized autonomous organization, KNC holders can vote on governance decisions.
According to the crypto project, the protocol upgrade is expected to go live on July 7.
Originally published at https://academy.aax.com on July 7, 2020.