KUCOIN x SATOSHI CLUB RECAP for AMA from May 14, 2020
On 14th of May Kucoin were invited to conduct an AMA with the Satoshi Club Community. Our guest was the CEO and Co-Founder of Kucoin — Johnny Lyu ( @lyu_johnny ). Total reward pool was $200 in KCS for 30 winners. Johnny Lyu shared a lot of great information and important points for Kucoin with our Community. During the Live Telegram session with questions from Community more than 500 were posted. Kucoin AMA gained impressive interest in Satoshi Club Telegram group.
Part 1 and introduction
Serg | Satoshi Club: Hello, dear friends! Today we will have another episode from our AMA series in Satoshi Club.
Today we present to you KuCoin! Our guest is Johnny Lyu — Co-founder & CEO of KuCoin. Welcome to Satoshi Club! Let’s have a great time together. Please tell us a little bit about yourself and how did you founded KuCoin.
Irina Kravchuk | SatoshiClub: Hi everyone and welcome Johnny Lyu
Johnny Lyu(CEO of KUCoin): Hello everyone, thanks for inviting me.
Serg | Satoshi Club: Please tell us a little bit about yourself and how did you founded KuCoin?
Johnny Lyu(CEO of KUCoin): I am the CEO of KuCoin Global and in charge of KuCoin, KuMEX, Pool-X, and other products. Before joining KuCoin, I used to work in the auto and luxury industries for many years. It is Michael who led me to the crypto world. We are high school classmates and Michael is an early Bitcoin miner. Michael used to be a user of Mt.Gox lol. He bought around 1000 BTC at the price of $10. And all these BTC went away with Mt.Gox. Actually that is one reason why he wanted to create an exchange that is super easy-to-use and secure, and that’s why we now have KuCoin.
Irina Kravchuk | SatoshiClub: I’m sure he wasn’t very happy when he lost 10k BTC, but it ended up quite well.
Serg | Satoshi Club: Ohh, I am very sorry for Michael :) But I think he doesn’t regret it now because you have created KuCoin :)
Johnny Lyu(CEO of KUCoin): Yup, a sad story but ends well.
Irina Kravchuk | SatoshiClub: He should be happy. Motivation is costly sometimes. Like all good stories. How it’s been in the beginning? When you first launched?
Johnny Lyu(CEO of KUCoin): KuCoin was founded in 2017.
Serg | Satoshi Club: Was it difficult to find investors, developers, to attract the first users?
Johnny Lyu(CEO of KUCoin): We started in 2017 when the market is quite bullish, so there have lots of investors in the market. And our product is easy-to-use and friendly to global users, so we have accumulated quite a lot users from the beginning.
TWITTER QUESTIONS FROM THE COMMUNITY
Q1 from Twitter user: @banderamamusya
Could you tell us more about The Project Pinocchio, which launch KuCoin announced in March? What data will you use to calculate the Pinocchio Index?
Johnny Lyu(CEO of KUCoin): As you know, Project Pinocchio is a neutral and credible alert platform for less trustworthy projects in the cryptocurrency industry. Through the establishment of a crypto credit reporting system, it will prevent malicious business behaviors such as cooperative breach of contract, illegal fundraising, and bad cryptos expeling good cryptos. Project Pinocchio is committed to creating a fair, just and transparent business environment, and providing a foundation for the healthy development of the blockchain and crypto industry.
Serg | Satoshi Club: So, it is like a blacklist for the crypto world?
Johnny Lyu(CEO of KUCoin): Yeah, you can understand the project as a blacklist, actullay we have published 2 lists till now.
Irina Kravchuk | SatoshiClub: That’s a great initiative.
Johnny Lyu(CEO of KUCoin): Project Pinocchio will introduce the Pinocchio Index as the evaluation standard, and all judgment results will be disclosed based on legal compliance. All information records will be stored on-chain with immutability via blockchain technology. Eventually, we will establish a non-profit credit reporting DApp. Pinocchio Index is a reference standard for the industry using multi-dimensional measurements, including moral hazard assessment, data analysis, public opinion monitoring, transaction history, project development, etc.
Irina Kravchuk | SatoshiClub: By the way Johnny Lyu. Where does the name come from? I mean the coin part is clear, what about Ku?
Johnny Lyu(CEO of KUCoin): In Chinese “Ku” means warehouse, we are the warehouse of coins, haha.
Q2 from Twitter user: @nandhase
What is your view of someone manipulating the tokens in exchanges. What are the measures taken by KuCoin to prevent liquidity wash trading?
Johnny Lyu(CEO of KUCoin): Actually, market manipulation also happens in the traditional finance world. In order to ensure the fairness of transactions and maintain the healthy development of the market, governments have, in many areas, implemented regulatory policies to constrain market manipulation behavior. Since crypto is still in the early stages, I believe that with the improvement of regulations and compliance in the market, the market will be more fair and just.
KuCoin is always fighting against wash trading. To prevent it, we have developed a system that can monitor the traders’ unusual behaviors. If, through the system, we detect liquidity wash trading, we will warn them first and take more serious actions after.
Irina Kravchuk | SatoshiClub: And does the monitoring system work? I mean have you noticed a drop in this kind of behaviour on KuCoin?
Johnny Lyu(CEO of KUCoin): Yes, we have warned some market makers when our system detected their usual data in trading.
Q3 from Twitter user: @dangsaoha2
Kucoin is the only exchange currently supporting the L3 mechanism, does this make Kucoin different from other exchanges and attract users? Can you introduce us to the L3 mechanism?
Johnny Lyu(CEO of KUCoin): Actually KuCoin is one of only two exchanges that support Level 3 data push (the other one being Coinbase), as most exchanges only support Level 2. As you might know, Level 1 can only push the price, Level 2 can push the price and quantity, and Level 3 can push the price, quantity and order ID. The L3 mechanism is unique in the industry, enabling users to know the details of every transaction and so eliminate any market manipulation. With Level 3, you will be able to check every single trade on KuCoin, which means the platform is 100% transparent. The L3 mechanism can push data and matching results to users as quickly as possible, which means users can react faster and gain more profit.
Irina Kravchuk | SatoshiClub: Just to make sure I get it right, the id’s of every trade is public, right?
Johnny Lyu(CEO of KUCoin): Yes.
Irina Kravchuk | SatoshiClub: But they are not linked to users, right? I mean an id = an user?
Johnny Lyu(CEO of KUCoin): Every user can track the data, if you check your API notifications, you can find the trasaction details.
Q4 from Twitter user: @laivulong41
How does Kucoin solve the problems that exchanges are facing: system overload, lack of liquidity, hacker attack?
Johnny Lyu(CEO of KUCoin): System overload is a common problem in the industry, especially in extreme markets — many exchanges have had problems with their systems. With the completion of the Bitcoin halving, Bitcoin’s price will fluctuate violently with high probability, and be more prone to become an extreme market. Therefore, the exchange should be ready to deal with the extreme market at any time. KuCoin, through the development of dynamic capacity expansion technology, in the extreme market to come, can actively implement rapid expansion of server resources to deal with the impact of large traffic growth, ensuring that the trading system is not stuck and not down. Liquidity is an issue that users are very concerned about and that we have been trying to solve. In fact, the liquidity is pretty good on KuCoin. In the CMC global exchange liquidity rankings, KuCoin ranks in the top 10. Take BTC/USDT for instance, the spread is only 0.1 USDT on KuCoin for the majority of the time. You can easily buy 1 or more BTC on KuCoin without affecting the spot price much.
Security is also very important. Many exchanges have been stolen due to hacker attacks. To protect our users and our system while maintaining stability and reliability, we have introduced many security mechanisms. We developed a WAF web page protection system, which can better analyze user behavior and malicious attack data, and establish a more rounded risk control monitoring system. This has led to the efficiency of malicious attack interception increasing by 70%. We are also working with many security companies like Chainalysis and Onchain to improve our security. I cannot say too much about this as the hackers may be watching as well. But for sure, trading on KuCoin is pretty safe. Let me know if you have any suggestions to make KuCoin safer.
Serg | Satoshi Club:
Btw, did you have problems during the high market volumes in the recent days? Coinbase was down if I am not wrong?
Johnny Lyu(CEO of KUCoin): We haven’t experienced any unexpected system down rencently. I know some exchanges were down in the dump in March 12, but we were good.
Serg | Satoshi Club: That’s a good sign.
Q5 from Twitter user: @salmanmbstu96
How about doing an IEO and Community coin vote Every month? Which will bring more volume to the exchange and may increase the use cases of KCS token along with the increase in demand.
Johnny Lyu(CEO of KUCoin): Good idea! Our Spotlight has been picking good projects, but we have a pretty high standard, so it could be hard to find that many qualified projects. The good news is we just launched the 6th Spotlight project — — LUKSO, and the token sale will happen on May 20. LUKSO, the blockchain for new digital lifestyle, was created by former Ethereum developer Fabian Vogelsteller, author of ERC20 and web3.js — both of which are the foundation for today’s DeFi protocols. Together with founder Marjorie Hernández, he is building the platform for the next wave of mainstream blockchain applications. Check out latest blog article to more know about the project: https://medium.com/kucoinexchange/5-things-you-must-know-about-lukso-f68d260e106
Serg | Satoshi Club: That’s interesting. Maybe we can have LUKSO here before the 20th of MAY? For an AMA.
Johnny Lyu(CEO of KUCoin): It would be great if LUKSO can have an AMA here!
PART 2 — LIVE QUESTIONS FROM TELEGRAM
Telegram User: What are the special features of KuMEX platform how this platform protect the traders from unusual liquidation caused by market manipulation?
Johnny Lyu(CEO of KUCoin): First, KuMEX is the only contract platform that supports Level 3 data push, and we’ve mentioned the benefits of L3 before. Also, KuMEX has a fairer index price, leading to a better mechanism to protect users’ positions. The Bitcoin Spot Index used by KuMEX is the volume-weighted average US dollar price of Bitcoin across 6 exchanges, which ensures the index price on KuMEX is fairer, avoiding the user’s contract being liquidated due to the low liquidity of the trading platform or large price fluctuations of one or two spot exchanges. Also, you may know that most futures platforms have an insurance fund, but different platforms use it differently. I know that some platforms only use like 20% or 30% of their insurance fund in a single day, which means the rest of the losses will be covered by users. But for KuMEX, all the funds in our insurance fund will be used to cover the unexpected losses. Besides, KuMEX also has a lite version which is very friendly to new futures traders.
Telegram User: Can you convince us about long-term potential increase in KuCoin token market value?
Johnny Lyu(CEO of KUCoin): Within KuCoin, the function of KCS is as many as the exchange token in other channels, pay trading fees, get VIP rights, etc., and KCS also has plenty of use cases outside of KuCoin in traveling, gaming, financing, social networking and other industries. As for the value of KCS, I think it has infinite possibilities. With the continuous expansion of the KuCoin ecosystem, the business around KCS will gradually become ecological, and the intrinsic value of KCS will be higher and higher. Along with the development of KuChain. KCS will play a more important role in KuCoin ecosystem than ever.
Telegram User: What is Pool-X Staking? Is it different from staking at other exchanges? What are the benefits of using Pool-X Staking?
Johnny Lyu(CEO of KUCoin): Pool-X is an exchange that provides liquidity for staking assets. When the user needs to redeem the staking tokens within a short time, the user can choose to transfer the staking certificates/credits in the liquidity trading market. By paying with a certain amount of POL (Pool-X native token), users who provide freely circulating crypto assets (liquidity providers) can quickly obtain the circulating tokens, and staking certificates are automatically transferred.
Telegram User: What are the advantage of being a KucoinVip?
Johnny Lyu(CEO of KUCoin): KuCoin VIP can enjoy 1 on 1 Service by Exclusive VIP Client Manager, Trading Fee Discount, New Product Alpha Test, API Request Limit Upgrade, Withdraw/Transaction Limit Upgrade, VIP Exclusive Campaign, etc. Numerous benefits of being KuCoin VIP, welcome to join.
Telegram User: What are the Fiat currencies possible to buy/sell crypto through depit card, credit card, or local banks ? And right now which fiat currency planning to open the gateway in soon?
Johnny Lyu(CEO of KUCoin): We now have supported 22 fiats like USD, GBP, EUR, VND and our goal this year is to support 100+ fiats.
CONCLUSION
Irina Kravchuk | SatoshiClub: Thank you very much Johnny Lyu for your time and answers. It took longer than we expected but we covered a lot of good topics.
Serg | Satoshi Club: And thank you for being here with us today! It was great. Do you have smth to add before we open the chat?
Johnny Lyu(CEO of KUCoin): If you guys wants to know more about us, please visit our web for more info
KuCoin: bit.ly/KuCoinSpot
KuMEX:bit.ly/KuCoinFutures
Pool-X: bit.ly/Pool-XStaking
