Who Will Purchase New Products From Bybit and KuCoin?

Due Diligence Required for Bybit and KuCoin New Products

Before using KuCoin’s Pre-Market product, customers must make a security deposit to place or fulfill orders as buyers or sellers. Failure to meet either party’s obligations will result in the forfeiture of the security deposit.

KuCoin also allows customers to create sell orders that can be fulfilled once the token goes live on the platform. This feature may appeal to more experienced traders who are familiar with the process of matching trades.

While these new products offer opportunities, they also carry risks. KuCoin’s Pre-Market trading allows the trading of tokens that have not yet been listed, which exposes investors to potential risks such as rug pulls and poor tokenomics.

It’s important to note that, while KuCoin recently introduced mandatory KYC checks, investors may still face other risks. Additionally, KuCoin, a subsidiary of MEK Global Limited, is registered as a digital asset exchange with the Financial Services Authority of the Seychelles. However, it has been included in the UK Financial Conduct Authority’s warning list for non-compliance with new financial promotion rules.

Bybit’s Double-Win product, on the other hand, focuses on maximizing profits from sharp price movements when an asset’s price falls outside a specific settlement range. This feature may attract short-term traders who are looking to capitalize on significant price fluctuations.

Bybit is currently seeking a full market license from Dubai’s Virtual Assets Regulatory Authority in order to expand its customer base beyond accredited investors. Should this license be granted, retail traders may face a disadvantage due to their limited experience compared to hedge funds and trading firms that traditionally dominate the high-speed industry.

Exchanges Face Challenges Ahead

These new promotions come at a time when retail traders are navigating a volatile market until institutions establish regulated vehicles to inject much-needed liquidity. In thinly traded markets, it takes smaller transactions to impact an asset’s price compared to deeply liquid markets.

Centralized exchanges have experienced decreases in both spot and derivative trading volumes as Bitcoin undergoes an extended consolidation period. Rising prices and economic conditions have also depleted pandemic savings for customers in the United States.

The impact of rising interest rates on crypto trading cannot be ignored. Borrowing money to fund trades can be affected by interest rate fluctuations. Consequently, customers may opt to invest in low-risk bonds while waiting for the US Federal Reserve’s tightening cycle to stabilize.

The cryptocurrency industry is also facing scrutiny after allegations that Hamas, a militant group in the Gaza Strip, funded its offensive against Israel using cryptocurrency. Israeli police seized the funds with the assistance of Binance. As a result, anti-crypto lawmakers in the United States, including Senators Elizabeth Warren and Sherrod Brown, are calling for swift government action and further investigation into the role of cryptocurrency in these events.

If you have any thoughts about the new products introduced by Bybit and KuCoin or any other related topics, please feel free to reach out to us or join the discussion on our Telegram channel. You can also find us on TikTok, Facebook, and Twitter.