A New York-based investment firm ‘Susquehanna International Group’ has agreed to invest $10 million in Kucoin, a cryptocurrency trading platform.
Kucoin received an investment from Susquehanna at the same $10 billion valuation they reported in the May round. The investment marks an extension of their previous fundraising effort and is especially notable as other crypto companies have seen their valuations cut in recent funding rounds.
Kucoin has secured an investment that will help it to trade more efficiently and it has plans to expand overseas. The company also plans on using some of the capital to add 300 new employees, as well as coordinating with Susquhanna Ventures to create a crypto startup incubation program.
Kucoin executives believe that the new influx of capital will allow the company to expand its presence on the Web3 and invest in blockchain projects.
Amidst the crypto crash in late 2018, Terra collapsed and wiped out $60 billion of its value. This has now started a domino effect that is similar to the financial crisis that happened in 2008. Yesterday, Zipmex confirmed on Twitter that they had been experiencing issues with their key partners, which led them to temporarily stop with withdrawals. The announcement came after the failure of Singapore’s Three Arrows Capital to pay their creditors in full. Additionally, it was announced that Celsius Network and Voyager Digital were among those creditors who lost 40% or more of their investments.
The cryptocurrency exchange based in Seychelles has denied rumors that it’s planning to halt withdrawals amid investigations. In an official statement, the Kucoin announced that its platform has surpassed 20 million users across 207 countries and regions and that trading volume reached $2 trillion in the first six months of this year, despite a disappointing market.
“Given that our long-term strategy implies a negative market scenario, the current market situation is not stressful for us,” Lyu said. “The crypto winter is not the only scenario for which we are prepared.” The CEO expects a recovery in the market no earlier than 2023. He cites factors like global geopolitics, monetary policy, and inflation that helps stabilize the economy to bolster the return of crypto investors.
Kucoin was founded five years ago in Singapore, and has expanded to offer crypto lending and trading of non-fungible tokens. These services were co-developed with the goal to help small investors invest in the crypto asset class. Kucoin trades over $1 billion per day and is one of the top 10 largest cryptocurrency exchanges by volume.