KuCoin Releases a New Crypto Trading Derivatives Platform KuMEX with XBTUSDM Perpetual Contracts

Leading cryptocurrency exchange KuCoin on July 8 announced the launch of a new platform that offers crypto derivatives trading. The trading platform, KuMex trading venue, is now live in public beta and will at first offer a bitcoin perpetual contract (XBTUSDM), which is quoted in USD and with up to 20x leverage.

Fair and Rigorous Pricing

The platform is aiming to break the hegemony of the crypto price system, and consequently make it fairer and much more rigorous than before.

KuMEX uses a bitcoin spot index, which provides a volume-weighted average of the U.S dollar price of bitcoin across major exchanges, such as Bittrex, Liquid, Gemini, Bitstamp, CoinPro and Kraken.

Transparency is one of the unique features of the new KuMEX platform. The platform offers some form of protection from risk with an insurance fund, while also disclosing the balance every day.

In order to provide the maximum security for its users, the platform has established an ‘’auto-deleveraging’’ system, that is meant to cover losses, should the insurance fund turn out to be insufficient.

The contingency fund is said to be less inflexible than settlement via standard socialized loss mechanisms. Apart from its transparent nature, the platform also tends to attract new retail investors to get involved with crypto derivatives by offering very low investment threshold, compared to what is being offered by its major competitors.

Flexible Investment

Commenting on the potential and the Unique Selling Point of the new platform, KuCoin CEO

Michael Gan stated that:

The XBTUSDM contract is 1USD which allows traders to make a more flexible investment. At the same time, KuMEX offers a negative fee for Makers at a rate of -0.025% with a certain amount of fixed commission, which will encourage users to provide liquidity to the platform through making the market and earning some commission as an incentive.

Gan maintained that although derivatives are considered far riskier, compared to the spot market, KuMEX is independently formed by a team of highly skilled and specialized professionals, who developed the platform, in such a way that the users will not incur any loss caused by any form of manipulation.

KuCoin also announced a trading competition, with a reward of 10,000 KCS for users with top scores in their return rate ranking.

Drive Towards Transparency

Accountability and transparency are some of the major features missing in most crypto exchanges, which is the major reasons bigwigs on Wall Street are sceptical about the sincerity of the crypto market.

The Bitcoin Exchange Guide team earlier in the year reported that although most crypto coins suffered a very heavy blow in 2018, stablecoins backed by fiat currencies, such as USD started appearing in great and exciting numbers.

The popularity of these stablecoins is largely due to the fact that firms can trust them enough to invest in them, as this cannot be said of most crypto coins and exchanges.

But with the KuMex platform and its transparent features, new users can once again invest in the market, while also strengthening the confidence of the established ones.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Ogwu Emma
Ogwu Emma
Ogwu Osaemezu Emmanuel is a blockchain analyst with several years of experience in the cryptospace. He writes regularly for several leading cryptocurrency platforms

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Fed Researching CBDC & Planning to Deposit ‘Digital Dollars' Directly To the Digital Wallets of Americans

Federal Reserve Bank of Cleveland President Loretta Mester revealed that each American would receive digital dollars directly. She said, "Legislation has proposed that each American...

65% Vote For ‘Zero Compensation' For MakerDAO Vault Owners Who Lost $8M On Black Thursday Crash

MakerDAO votes against compensating vault owners following the Black Thursday crash in March of this year. Over 65% of the votes cast opted...

Gemini Crypto Exchange Opens Up GBP for Buying, Selling, and Trading for UK Customers

Cryptocurrency exchange Gemini is now expanding into the UK. The launch follows obtaining an electronic-money institutions (EMI) license from the Financial Conduct Authority (FCA) after...

Stocks & Gold Getting Hammered But Bitcoin Fundamentals Do Not Support A BTC Crash to $7k

In another red day of the week, Bitcoin dropped to about $10,150 level. Just like the weak price performance, with BTC currently trading around...

People's Bank of China (PBoC) Testing Digital Yuan (DCEP) for Credit Card Payments

China has been aggressively developing its central bank-issued digital currency (CBDC), popularly known as digital yuan. As per the latest reports, the People's Bank...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today