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.
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.
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.