KuCoin has just officially announced its partnership with the cryptocurrency exchange Poloniex. KuCoin and Poloniex will partner on research and technology development, liquidity sharing, product iterations, PoS and PoW mining pools, and other industry exploration.
It is very often difficult to find a partnership between cryptocurrency exchangers. When this happens, a major exchanger acquires another regional or specialized platform with the aim of expanding or diversifying its market. The association between these two competitors Poloniex and KuCoin will have positive repercussions for the industry but above all will benefit both exchangers.
Who are these two platforms?
Poloniex and KuCoin are not very big cryptocurrency trading platforms like Binance and Huobi, they still have a pretty good market share. For example in a day, the trading volume under the Poloniex platform can be between 35 and 36 million dollars while KuCoin can total him transactions of 130 to 136 million dollars.
KuCoin is a Hong Kong-based cryptocurrency exchanger. The company wants to make cryptocurrency trading as easy as possible for everyone. It does this by adding as many new parts as possible to its offering, but above all by keeping costs low. The KuCoin was first put into use in 2017 and has grown very rapidly since then. Cryptocurrencies such as Bitcoin, Etherum, and Ripple are available on the platform.
Poloniex was launched in 2014 and is based in Wilmington, Delaware, United States. It was recently acquired by Circle, a large company backed by Goldman-Sachs. With Circle as the new owners, they aim to make Poloniex the premier regulated exchange by registering with the SEC and FINRA as a broker. They also intend to expand the interchange to the Asian market.
How is this partnership strategic for the two interchanges?
A strategic partnership usually means that the entities in question believe that there are advantages to working together, even if this is not defined in advance. That said, the two exchangers have identified areas in which they plan to work together: they intend to co-invest in research into derivatives and corresponding engine technologies, and to create a joint research institute to explore new opportunities in the industry.
Here's what Shelley Wu, Vice President of Global Business and Marketing at Poloniex, said about the partnership:
We are very happy to be able to enter into a strategic partnership with KuCoin. For a long time, the digital asset trading industry has been plagued by internal attrition and competition, but this is not healthy for the industry. The strategic cooperation between Poloniex and KuCoin shows that there is not only competition in the industry, but also the possibility of mutually beneficial cooperation and collaboration.
The strategic cooperation between Poloniex and KuCoin shows that there is not only competition in the industry, but also the possibility of mutually beneficial cooperation and collaboration.
How will this partnership benefit the crypto industry?
KuCoin has established strategic cooperation with Poloniex. KuCoin and Poloniex will partner in research and development of trading technologies, liquidity sharing, product iterations, PoS and PoW mining pools, and other industry exploration. The two sides will jointly promote the market, which will allow the existing market to transform into a progressive market.
At the same time, the two sides will also co-invest research resources in derivatives and corresponding engine technology, and create a joint research institute to explore new opportunities in the crypto industry.