VICTORIA, Seychelle, March 3, 2021 /PRNewswire/ — On March 3, 2021, KuCoin, an IDG-backed crypto change, introduced that its leveraged tokens have been made accessible for beta check. The primary batch of leveraged tokens to be launched are BTC3L, BTC3S, ETH3L and ETH3S, and invited customers will be capable of commerce the tokens within the KuCoin Sandbox. The characteristic might be formally launched in the midst of March.
Leveraged tokens are a brand new sort of crypto by-product with none due date. Its buying and selling expertise is sort of user-friendly because it’s primarily the identical as buying and selling within the Spot market. In comparison with perpetual contracts on KuCoin Futures, merchants of leveraged tokens can even amplify their funding returns with leverage. Whereas the most important benefit of leveraged tokens is that they’ll by no means be liquidated.
Take the BTC3L and BTC3S, for instance: the underlying asset is Bitcoin (BTC) and each leveraged tokens have been utilized with 3 occasions leverage. It implies that when Bitcoin’s worth will increase by 1%, the online worth of BTC3L will enhance by 3%, whereas that of the BTC3S will drop by 3%.
KuCoin International CEO Johnny Lyu said, “As an modern derivatives product, KuCoin Leveraged Tokens have distinctive options, resembling zero margin charges and no danger of liquidation. With the launch of this service, KuCoin will give customers simpler entry to extra superior funding instruments. Subsequent, KuCoin Leveraged Tokens will assist extra high cash like LTC and trending cash within the DeFi area or Polkadot ecosystem, complementing KuCoin’s ecosystem as a number one crypto buying and selling service supplier.”
As a by-product product that has been nicely developed within the conventional monetary market, leveraged tokens are appropriate for a big majority of crypto buyers. The product is especially tailor-made for buyers who need to make a revenue from the market volatility however don’t need to bear the chance of liquidation.
Primarily based on the instance given by KuCoin, if the Bitcoin worth rises 10% for 4 consecutive days, the theoretical return of BTC3L on KuCoin might be 185%, greater than 3 occasions greater than the positive factors within the Spot market.
KuCoin is a worldwide cryptocurrency change for quite a few digital belongings and cryptocurrencies. Launched in September 2017, KuCoin has grown into some of the standard crypto exchanges. It at present gives Spot buying and selling, Margin buying and selling, P2P fiat buying and selling, Futures buying and selling, Staking, and Lending to its 6 million customers in 207 international locations and areas world wide. In 2018, KuCoin has secured $20 million in Spherical A funding from IDG Capital and Matrix Companions.