Bybit and KuCoin Introduce New Products for Revenue Generation
Crypto exchanges ByBit and KuCoin have launched new features to generate revenue amid declining exchange volumes. ByBit’s Double-Win allows traders to profit from significant price movements, while KuCoin’s Pre-Market trading offers peer-to-peer access to emerging tokens.
Bybit and KuCoin New Products Need Due Diligence
With ByBit’s Double-Win, traders can quickly profit from large price swings if the current price differs from a settlement range. On the other hand, KuCoin customers can lock in buying and selling prices for over-the-counter (OTC) trading without platform intervention.
To use KuCoin’s Pre-Market feature, customers must pay a security deposit to place or fulfill orders. Failure to meet obligations will result in a forfeiture of the security deposit. Advanced traders familiar with matching trades may find this appealing.
The product carries risks as it allows trading of tokens that are not yet listed. While KYC checks are mandatory on KuCoin, investors could still face risks related to rug pulls and poor tokenomics.
Exchanges Face Tough Road Ahead
Retail traders are facing a volatile market until regulated vehicles provide much-needed liquidity. In thinly traded markets, smaller transactions can have a greater impact on asset prices compared to deeply liquid markets.
Spot and derivative trading volumes on centralized exchanges have declined due to Bitcoin’s extended consolidation period. Rising prices and economic conditions have also depleted savings for US customers.
The industry is under scrutiny after allegations that Hamas funded its offensive against Israel using cryptocurrency. This has prompted US lawmakers to call for a government response, with efforts being made to determine the role of crypto in recent attacks.
Hot Take: ByBit and KuCoin’s New Products Aim to Boost Revenue Amidst Declining Exchange Volumes
By introducing innovative features like Double-Win and Pre-Market trading, ByBit and KuCoin are attempting to generate additional revenue amidst dwindling exchange volumes. These products offer traders the opportunity to profit from significant price movements and gain access to emerging tokens.
However, it is important for traders to exercise due diligence when using these new features. KuCoin’s Pre-Market trading carries risks associated with trading tokens that have not yet been listed, while ByBit’s Double-Win could attract short-term traders looking for large profits.
Furthermore, exchanges face challenges in the current market environment, with retail traders experiencing volatility and a lack of liquidity. The industry is also under scrutiny due to allegations of cryptocurrency being used to fund illegal activities. Overall, while these new products offer potential benefits, traders should carefully consider the risks involved.
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